In this study, selective precipitation using magnesium oxide (MgO) and bio-sorption with banana peels (BPs) were explored for the treatment and valorization of acid mine drainage (AMD). The treatment chain comprised two distinct stages of which selective precipitation of chemical species using MgO (step1) and polishing of pre-treated AMD using BPs (step 2). In stage 1, 2.0 L of AMD from coal mine was used for selective precipitation and recovery of chemical species using MgO. The results revealed that chemical species of concern were precipitated and recovered at different pH gradients with Fe(III) precipitated at pH ≤4, Al at pH ≥4–5, Fe(II), Mn and Zn at pH ≥8 while Ca and SO42- were precipitated throughout the pH range. In stage 2, the pre-treated AMD water was polished using BPs. The results revealed an overall increase of pH from 1.7 to 10, and substantial removal of chemical species in the following removal efficiency: Al, Cu and Zn (100% each), ≥Fe and Mn (99.99% each), ≥Ni (99.93%), and ≥SO42- (90%). The chemical treatment step removed pollutants partially, where-as the bio-sorption step acted as a polishing stage by removing residual pollutants.