In the present investigation, the physico-chemical parameters of high sulphur North-east Indian coals, the problem of acid mine draiange (AMD) formation in the mining sites and remediation options have been reported. These coals are charaterized by low ash, high volatile, sulphur and friability. AMD produced in these areas releases highly acidic effluents enriched with metal contents. Acidic mine waters was found to be reddish brown to yellow in colour due to the presence of Fe and Al sulphate salts respectively. The Cr, Cu, Cd, and Pb found in soil and sediments were bio-available. Micro- encapsulation studies with phosphates has showed inhibition of pyrite oxidation. A Sequential Alkalinity Producing (SAP) process containing chemical and bio-chemical methods has been developed for treatment of AMD. A site specific Environmental Management Plan has also been reported.