Underground mining causes surface subsidence long after the mining operation had been ceased. Surface subsidence can be in the form of saucer-shaped depression or collapsed chimneys or sinkholes. Sinkhole formations are predominant over shallow-depth room and pillar mines having weak overburden strata. In this study, occurrences of sinkholes due to mining activity are assessed based on local geological conditions and mining parameters using fuzzy reasoning techniques. All input and output parameters are represented with linguistic hedges. Numerous fuzzy rules are developed to relate sinkhole occurrences with input parameters using fuzzy relational matrix. Based on the combined fuzzy rules, possibility of sinkhole occurrences can be ascertained once the geological and mining parameters of any area are known.