In this study, we investigated the grinding and sedimentation(elutriation) process of the dusts for the effective separation of high purity iron and iron oxides. For characterization of the dust, particle size distribution and chemical composition, were examined. The results obtained in this study may be summarized as follows : 1. The converter CF(clarifier) dust of the Pohang 1st, 2nd steel making factory and EC(Evaporation Cooler), EP(Eltrostatic precititator) dust of the Kwangyang 2nd steel making factory are composed $\alpha$-Fe(21~50%), FeO(wustite)$Fe_3$$O_4$(magnetite), $Fe_2$$O_3$, CaO, $Al_2$$O_3$, $SiO_2$, and etc. 2. Pure iron has ductile characteristic in nature, particle size of the pure iron increase by increasing the grinding time. On the other hand, it is conformed that bo고 particles of hematite and magnetite become less than 325 mesh after 10 minutes grinding. 3. By applying the elutriation technique for the EC dust of the Kwangyang 2nd steel making factory, the iron powder of high content more than 99.17% of pure Fe was recovered with 37.8% yield at grinding time for 40 minutes. 4. By applying the elutriation technique for the CF dust of the Pohang 2nd steel making factory, the iron powder of high content more than 98.38% of pure Fe was recovered with 44.42% yield at grinding time for 40 minutes. 5. When magnetic separation was performed using plastic bonding magnet of 70 gauss, more than 98% Fe grade of iron powder was recovered in the size range +65 -200 mesh but the recovery of it was low.