In the present investigation, raw and beneficiated haematite iron ores have been used for preparation of catalysts keeping promoters content same. Since on beneficiation, catalysts activity have been increased in case of haematite ores, only beneficiated magnetite ores with same promoters were used for catalysts preparation. The catalyst prepared from fairly pure ferric nitrate shows the highest activity. On the basis of activity and selectivity obtained by using different catalysts, the raw materials have been graded according to their activities. From the experimental results it can be concluded that beneficiated magnetite has good technological feasibility and economic viability for commercialization as raw materials for preparation of catalyst for use in coal conversion by Fischer-Tropsch process.