In recent years, due to advances in designing of various magnet assemblies, a wide range of magnetic materials with different properties can be concentrated. Jalal Abad iron ore beneficiation plant, which is located in Iran, Kerman province, is currently producing iron ore concentrate with the capacity of 0.8 Mt/a by having medium intensity magnetic separators (MIMS) with rougher and cleaner stages that finally leads to the production of an iron concentrate with the Fe grade of about 65 per cent. In this plant, the rougher tailings directly goes to the thickener as the final tailings and cleaner tailings feeds to the ball mill for regrinding. Since some hematite particles with weak magnetic properties cannot be recovered from only these two stages of magnetic separation, the obtained tailings from this concentration plant has approximately an iron grade of 25 per cent to 27 per cent. Accordingly, laboratory processing tests were conducted on the obtained representative sample of the final tailings. Based on the experimental results performed on final tailings, a new magnetic drum separator with a specific magnetic assembly was designed that could finally lead to product with iron grade range of 58 per cent to 60 per cent with relative and total weight per cent of 8.6 per cent and 3.86 per cent. Finally, it could be concluded that feeding of magnetite particles to the existing drum separators, due to their high magnetic field intensity, cannot efficiently lead to improvement of the grade of concentrate. Therefore, pilot magnetic separation tests were done on the final concentrate for evaluation of product upgrading probability. Consequently, by increasing another stage of cleaning and by decreasing the magnetic field intensity, the final product grade could be enhanced from 65 per cent to 67 per cent.