The realization of a harmonious relationship between the natural environment and economic development has always been the unremitting pursuit of traditional mineral resource-based cities. With rich reserves of iron and coal ore resources, Laiwu has become an important steel production base in Shandong Province in China, after several decades of industrial development. However, some serious environmental problems have occurred with the quick development of local steel industries, with ground subsidence and consequent secondary disasters as the most representative ones. To better evaluate possible ground collapse risk, comprehensive approaches incorporating the common deformation monitoring with small-baseline subset (SBAS)-synthetic aperture radar interferometry (InSAR) technique, environmental factors analysis, and risk evaluation are designed here with ALOS PALSAR and Sentinel-1 SAR observations. A retrospect on the ground deformation process indicates that ground deformation has largely decreased by around 51.57% in area but increased on average by around −5.4 mm/year in magnitude over the observation period of Sentinel-1 (30 July 2015 to 22 August 2022), compared to that of ALOS PALSAR (17 January 2007 to 28 October 2010). To better reveal the potential triggering mechanism, environmental factors are also utilized and conjointly analyzed with the ground deformation time series. These analysis results indicate that the ground deformation signals are highly correlated with human industrial activities, such underground mining, and the operation of manual infrastructures (landfill, tailing pond, and so on). In addition, the evaluation demonstrates that the area with potential collapse risk (levels of medium, high, and extremely high) occupies around 8.19 km2, approximately 0.86% of the whole study region. This study sheds a bright light on the safety guarantee for the industrial operation and the ecologically friendly urban development of traditional steel production industrial cities in China.