Magnetite has been used in coal processing for many years and it is likely that its use will continue well into the twenty first Century. While magnetite is only a minor cost component in coal processing, the use of processed magnetite in dense medium separation is essential to provide the split of quality coal products which the markets of today demand. The occurrence of magnetite in Australia is relatively abundant, but a combination of its iron content, magnetic properties, quality and proximity to the coal processing plants is essential to provide a low cost product for use in the Coal Industry. The demand for more splitting of coal in coal processing may require more grades of magnetite, particularly as a finer grade lower specific gravity medium to separate the finer quality low ash coals.