Abstract: This paper studies the dry grinding and dry separation process of an iron ore in Chile, mainly to solve the problem of the mine being unable to develop under unfavorable conditions such as water shortage. By using the dry grinding and dry separation technology, the mine realizes effective utilization of resources and creates economic value. Firstly, through the analysis of mineral composition, chemical properties, distribution size and other raw ore properties, it is preliminarily determined that the ore can be recovered by dry grinding and dry separation process. Secondly, in the laboratory test, the ore is crushed in two stages, which is crushed to −1 mm. And qualified iron concentrate with the grade more than 58% could be obtained after three stages of dry magnetic separation operation. Finally, with the support of ore process mineralogy and small beneficiation test, the suitable industrial beneficiation process is explored. Through the operation of two-stage crushing, two-stage high pressure grinding roller and three-stage dry magnetic separation, qualified products with the grade more than 58% and recovery rate about 70% are selected, which provides a reasonable solution for the development and utilization of the mine. It can be found that in arid and water-scarce areas, the dry grinding and dry separation operation mentioned in this paper can effectively solve the problem that a large amount of process water is needed in the traditional beneficiation process. Under the premise of discarding part of metal recovery, it can realize the maximization of mine benefits and provide a technical idea for the development of such mines.