Motivated by the PEACOC project on metal recovery from solid wastes, an innovative magnetic density separation (MDS) process has been developed for granular material sorting. It has intrinsic advantages over the existing industrialized MDS by eliminating fluid turbulence and particle jamming problems. The new MDS applies an inclined planar magnet and a horizontal basin containing a static magnetic fluid as the separation medium. A particle sliding phenomenon is identified as a feature of the process which could help the separation. The MDS successfully sorted shredded PCBAs to concentrate valuable metals and sorted shredded wires to reduce metallic contaminants in the plastic fractions. A pilot scale facility is introduced to show the design to achieve continuous production and to reduce the consumption of ferrofluid.