This study was carried out in order to provide basic information on neutralization processes of acid mine drainage (AMD) from the abandoned Donghae coal mine in the Samchuk coalfield. The contents of potentially toxic elements in stream water increase and the level of pH decreases during dry season. Hydrated lime is turned out to be the best neutralizer of the acid mine water from a technical and economic viewpoint. From the results of equilibrium calculation, Fe and Al could be precipitated as FeOOH, and Al(OH)$_3$, respectively, in the neutralization process. The sites of holding basins necessary to equalize quantity and quality of AMD are recommended by GIS analysis, and the capacities of holding basins are determined by hydrological calculation.