Acidic mine Drainage (AMD) is still considered one of the greatest mining sustainability challenges due to the large volumes of wastes generated and the high associated treatment cost. New regulation initiatives on sustainable development, circular economy and the need for strategic elements as Rare Earth Elements (REE) may overcome the traditional research initiatives directed to developing low cost treatment options and to develop research initiatives to identify the potential benefit of considering such AMD as a potential secondary resource. As an example, this study develops the integration of a three-stage process where REE are selectively separated from base metals (e.g. Fe, Al, Mn, Ca, Mg, Cd, Pb) and then concentrate to produce a rich REE by-product recovered as REE-phosphates. Selective separation of Fe (>99%) was achieved by total oxidation to Fe(III) and subsequent precipitation as schwertmannite at pH 3,6 ± 0.2. REE were then extracted from AMD using a sulfonic ion-exchange resin to produce concentrated REE sulfuric solutions up to 0.25 gREE/L. In a final stage selective separation of REE from Al(III), Ca(II) and Mg(II) and transitions elements (Cu, Zn, Ni) was achieved by precipitation with phosphate solutions under optimized pH control and total phosphate concentration. XRD analysis identified low-crystalline minerals. By using a thermal treatment the presence of PrPO4(s) and Cheralite (CePO4(s)) where Ce is substituted by La and Ca and Xenotime (YPO4(s)) were found as main minerals AlPO4(s) Ca,MgYPO4(s) were also identified. Display omitted •Rare earth recovery from acid mine drainage•Effective process to treat acid mine drainage to concentrate and recover rare earth elements•Integration of selective phosphate precipitation with ion-exchange concentration•Selective separation of rare earth elements from transition elements