Acid mine drainage is one of main environmental impact from mining activities all over the world: from early stage of exploration, exploitation and mine closure. Acid mine drainage is yielded from oxidation reaction of Pyrite in saturated condition and characterized by elevated acidity, sulphate and dissolved iron. Acid mine drainage can leach overburden which in turn elevating dissolved metals, including rare earth elements (REE). REE is used widely in geochemical analysis of rock-water interaction thus can be used as an indicator of water pollution by acid mine drainage. In the other hand, acid mine drainage can be a source of REE. Acid mine drainage from PT Bukit Asam are geochemically characterized as unigue, with elevated dissolved iron and manganese and indication of REE-enrichment. This study is conducted by using 11 AMD samples from all area of PT Bukit Asam. Physicochemical Parameter of those AMD samples of samples shown variability and elevated Fe, Mn and REE concentration. (ZREE varying from 5.54 — 261.05ug/L, Fe 0.11 — 29,78mg/L and Mn 2.83 — 16.35 mg/L). Result on Pearson correlation analysis and hierarchical clustering analysis (HCA) show that physicochemical parameters that strongly correlated with concentration of ZREE are Al, ZFe and pH value, which indicates the likelihood of formation of Fe- and Al-precipitates/complexes with REE in various pH value.