During the processing of iron ores, a large quantity of low-grade tailings containing abundant iron values in fine particle size range is produced. Due to the increasing demand in the high-grade ores for the metallurgical operations and the stringent environmental conditions on the mining activity, it is essential to utilize the waste tailing pond slimes. Recovery of iron values form these tailing ponds not only enhance the life of the existing operating mines but also finds the route to achieve the sustainable process. Iron ore tailing/slime (-150 μm) is produced after scrubbing and wet screening of a low-grade iron ore. Tailing beneficiation of iron ore has been addressed either by flotation or wet high intensity high gradient separation. The present study aims to recover iron values from discarded slime containing assay ~56% Fe, ~6.5% SiO2, and ~7.0% Al2O3 from Noamundi processing plant by using high gradient magnetic separator (HGMS). In this process, the tailings is effectively processed with vertical pulsating high gradient magnetic separator to produce a relatively high-grade iron concentrate. The results of investigation indicate that this novel process is capable of producing an iron concentrate assaying ~ 60% Fe and ~3.25% alumina with a yield of ~55 % on weight basis and recover > 65 % iron bearing particles from the tailings. More importantly, the corresponding tail contained ~45% Fe. It was concluded that this novel process may be effectively used to recover iron values from low-grade hematite tailings.