This work presents a semi-smelting reduction and magnetic separation process for the recovery of iron and alumina slag from iron rich bauxite ore. The effect of the process parameters on the recovery rate of iron, maximum particle size of the iron nugget, and the Al2O3 content of the alumina slag was investigated and optimized. The results show that the iron nuggets and alumina slag can be obtained in a short time through a semi-smelting reduction and magnetic separation process. The maximum particle size of iron nugget is about 15 mm, and the recovery rate of the iron and Al2O3 grade of the alumina slag are 96.84 wt % and 43.98 wt %, respectively. The alumina slag consisted mainly of alumina (α-Al2O3), calcium hexaluminate (CaAl12O19), gehlenite (Ca2Al2SiO7), and small amounts of hercynite (FeAl4O7), and metallic iron (M.Fe).