To reduce the volume of precipitates generated by the neutralization of acid mine drainage (AMD) containing high concentrations of Fe and As, ferritization of the precipitates was attempted by a two-step neutralization process in which magnesium oxide (MgO) was used as the first neutralizer and sodium hydroxide (NaOH) as the second. Batch neutralization experiments with MgO and continuous flow experiments by the two-step neutralization were conducted in laboratories and an AMD treatment plant. The results showed that the precipitates by the neutralization were magnetized in the continuous flow experiments, although there was Al and Si that prevented the generation of ferrite in the AMD. This indicates that ferrite was formed from the precipitates after removing most of the soluble Al and Si by the first neutralization. In addition, aging of the precipitates under reducing conditions and returning the aged precipitates to a ferrite tank were required to form ferrite. The molar ratio of As to Fe in the precipitates reached a constant value at pH>3.5. This suggests the coprecipitation of As and Fe.