This work presents, for the first time, the development of magnetic composites using activated biochar (BC-Act) derived from yerba mate waste. It includes an analysis of the effect of the activation process on the formation of iron oxides using the most applied methodologies, an aspect that has not been studied before. Three methodologies have been considered for Fe oxides grown: coprecipitation (COP), impregnation-pyrolysis (IP), and alkaline oxidation in the presence of nitrates (AOPN). The materials with magnetic response and good enough BET area have been used to sorb Paracetamol (PCT) and Atenolol (ATE) from aqueous solutions. The activation process has resulted in the formation of mesopores, an increase of surface area due to the destruction/release of impurities, the transformation of whewellite to calcite, and changes in magnetic behavior. These changes seem to affect the formation of Fe oxides. The COP and IP methods allow the development of magnetic composites based on BC-Act, BC-Act-COP and BC-Act-IP, with saturation magnetization of 3.1 Am2/kg and 1.5 Am2/kg, respectively, attributed to magnetite/maghemite formation and a minimal distance for manipulation by a magnetic field of 12.1 mm and 7.9 mm, respectively. These distances must be considered when developing efficient removal systems using magnetic composites. PCT was sorbed faster and more efficiently than ATE, associated with its smaller molecular size. This presents a valuable contribution to environmental sustainability and advancements in water purification, highlighting the dual advantage of converting the widely available waste product, predominantly found in South America, into an effective sorbent with magnetic characteristics, capable of removing pharmaceutical contaminants from aqueous solutions. This is done in the circular economy, avoiding the final deposition of yerba mate waste in landfills, increasing their lifespan, and safeguarding other natural and non-renewable resources, such as clays, whose preservation rather than exploitation improves environmental quality and saves energy.