Dense medium separation (DMS) using a waste iron powder from a powder metallurgical plant as solid medium was studied to produce a coarse andalusite concentrate from Kuerle andalusite ore. A high-grade, coarse, andalusite concentrate assaying over 92% andalusite was produced by DMS and magnetic separation, which satisfies the market for the production of a high-duty refractory material. It was also found that the viscosity of waste iron powder suspension could be greatly reduced by adding sodium silicate, leading to better DMS efficiency. The main parameters in DMS of Kuerle andalusite ore, namely feed medium density, underflow spigot diameter and feed pressure, have been studied.