A methodology is proposed to develop an optimization model to understand the impact of transporting minerals, from mines to the final destination, on air quality. Recently, there has been increasing concern about the combined effects of multiple activities over many years, and the regional environmental changes brought about by a single project. Environmental issues in the iron ore industry have highlighted the need to broaden the cumulative impact assessment. In this study, we simulated the optimal routes and quantity of materials needed to meet the destination plant demand based upon environment constraints (level of air pollution), as well as the cost of transportation and availability of materials. Multiple scenarios were developed to analyse the effects of changes in routes, alternative transport system (or multi-modal split), traffic congestion, and the cumulative impacts on air quality. The air quality impact zones of the study area were demarcated using a GIS technique. The expected outcome of the study is the selection of a suitable transport system for a particular site with the least impact on air quality, including the transportation route, relative to the minimum cost of transportation of the minerals from the mines to their final destination. The proposed methodology is evaluated with a case study.