Acid mine drainage (AMD) is one of the most significant environmental challenges facing the mining industry worldwide. It occurs as a result of natural oxidation of sulphide minerals contained in mining wastes at developmental, operating and closed/decommissioned mine sites. This contamination occurs when moving fresh surface water interacts with the rock through fissures, pores and faults, and over time it is changed chemically. These changes often make the water less than ideal for domestic use, and in extreme cases it can be dangerous. AMD may also adversely impact the surface water in streams and groundwater quality and land use due to its typical low pH, high acidity and elevated concentrations of metals and sulphate content. The development of AMD must be put under check because once it develops at a mine; its control can be difficult and expensive. Many a mining environment especially coal mining areas have suffered degradation as a result of acid mine drainage. The proposed Lafia-Obi coal mine which is expected to provide the much needed coking coal for the Adjaokuta Steel Industry cannot be an exception to such environmental menace .The expected coal mining activities has the capacity to affect the quality of domestic water supply to the Nasarawa state capital and its environment with possible unpleasant socio-physiological consequences if not appropriately controlled. The paper provides an early diagnosis of the expected environmental problems associated with mining in addition to identification of appropriate prevention/control and/ or remediation measures and implementation of these methods to the site to reduce the potential risk of AMD generation.