Abstract:The representative magnesium-rich nickel oxide ore in Yunnan Province was analyzed and characterized by XRD, TG-DSC, SEM, ICP-OES, optimal microscope and necessary chemical analysis. The results show that magnesium oxide content is as high as 31.49%; 87% of minerals are serpentine and iron oxides occupy only 10%; over 83% of nickel distributes in silicate minerals in the forms of isomorphous substitution and adsorption. Sulfuric acid consumption is as high as 1.15 t per ton ore due to high magnesium content of ore. Based on mineral phase compositions, an innovative technology for coal-based metalized reduction of nickel oxide ore in presence of activator at low temperature followed by magnetic separation to recover nickel and iron is proposed. Recovery of nickel and iron rises from 40.27% and 42.30% to 83.46% and 74.50%, respectively.