The identification of a more economical source of magnesium, coupled with reduced preparation costs, is essential for enhancing the competitiveness of magnesium potassium phosphate cement (MKPC) production. This study explores the utilization of magnesite tailings, waste materials produced during the mining and ore dressing process of magnesite, as raw materials for the preparation of low-cost dead-burnt magnesium oxide (MgO-T) at comparatively low calcination temperatures. The research demonstrated that impurities, specifically silicon and calcium, formed compounds with MgO during calcination, leading to the encapsulation of certain MgO particles. This encapsulation reduced both the specific surface area and hydration activity of the MgO. Despite the calcination temperature of 1100 °C being significantly lower than that of commercial dead-burnt MgO (MgO-C) at 1700 °C, MgO-T exhibited lower activity compared to MgO-C, which rendered it more suitable for the production of MKPC. Under optimal conditions, characterized by a molar ratio of magnesium to phosphorus (M/P) of 3, a borax retarder content of 15%, and a water-cement ratio of 0.15, the MKPC prepared using MgO-T demonstrated an initial setting time exceeding 60min and achieved a compressive strength of up to 79.6MPa. XRD and microstructural analyses revealed that struvite-K was the primary strength phase; however, the porosity of the specimens had a more pronounced effect on strength. By producing lower activity MgO at reduced calcination temperatures, this method obviates the need for complex purification processes when utilizing magnesite tailings, thereby decreasing the costs associated with MKPC preparation and presenting promising applications for the future.