It needs very high intensity magnetic field. Hence the reduction roasting process was adopted. The goethite was changed to magnetite phase and then it was beneficiated using LIMS. It was possible to achieve around 20% yield with 65% Fe in the concentrate. The alkalii materials are changed to the sodium silicate or aluminate during reduction roasting. The reduction roasting process was demonstrated at the rate 60kg/hr feed of red mud using pilot scale rotary kiln after making the micro pellet.