Australia is presently enjoying the fruits of a booming iron ore market. Expectations are that market strength will be supported in the short to medium term by increasing feedstock demands from steel mills, as world economies rebuild post-Covid-19. However, as cost and environmental pressures increase the longer-term market outlook will be dominated by product quality. The ‘flight to quality’ will place increasing demands on direct shipping ore miners as they compete to maintain their standing in the iron ore marketplace. China will progressively disengage from its dependence on Australian imports, leaving miners under increasing pressure to boost product quality and diversify outlets globally. Australia has vast deposits of low-grade magnetite ores located mainly in remote and arid regions of the continent. This paper proposes a dry grinding and magnetic separation process to produce premium concentrate grades from the low-grade ores, to assist in meeting future product quality demands. The premium grade concentrates could be either blended with lower quality direct shipping ores or marketed separately. The proposed dry concentration process involves the pairing of Vertical Roller Milling (VRM), a mature technology widely used in the cement industry, and Planar Magnetic Separation (PMS), a new methodology, which has been developed to the threshold of commercialisation by the private Australian company Cyclomag P/L. Two laboratory prototype planar magnetic separators with field strengths of 1800 gauss and 6000 gauss have been built and tested on a range of magnetite ore types over the past three years. In each case, following grinding to liberation sizes, a combination of roughing and cleaning operations has produced pellet grade concentrates. Vertical roller milling has competed successfully with conventional media milling in grinding cement clinker, limestone and blast furnace slags. A key advantage of dry VRM/PMS processing is its potential adaptability to stepwise modular development, which can minimise initial capital investment, while generating early revenue streams to cope with unpredictable market volatility.