A craft of carbothermic reduction-magnetic separation process is investigated for the recovery of iron from cyanide residues, a hazardous industrial wastes when produce gold with cyanide leaching method. The cyanide residues, containing 30.12% Fe was conducted for the craft. The results demonstrated that iron concentrate with 60.25% Fe and 79.85% of iron recovery was obtained under the optimal conditions (a reduction temperature of 950°C, a reduction duration of 60 min, a pulverized coal dosage of 10% and a potassium carbonate dosage of 4%).This craft can be used to utilize cyanide residues and produce qualified concentrate as iron-bearing feed for steel industry, which will help to solve the pollution of cyanide residues and extend raw material sourcing for Chinese steel industry.