We give a theoretical treatment of magnetic dipole absorption of electromagnetic radiation in small conducting particles, at photon energies which are large compared to the single-particle level spacing, and small compared to the plasma frequency. We discuss both diffusive and ballistic electron dynamics for particles of arbitrary shape. The conductivity becomes non-local when the frequency is smaller than the frequency characterizing the transit of electrons from one side of the particle to the other, but in the diffusive case plays no role in determining the absorption coefficient. In the ballistic case, the absorption coefficient is proportional to for , but is a decreasing function of for .