As rare earth metal prices fall, the low-cost beneficiation of their minerals has become essential. Flotation magnetic (FM) separation is a newly-developed technology for the economic recovery of rare earth elements from the Dalucao ore. The FM process selectively agglomerates the rare earth particles while separating them from gangue minerals by bubble flotation. The agglomeration of fine bastnaesite particles has been observed by optical microscope and SEM combined with EDS which approves that the collector is selective for the fine mineral of bastnaesite. The quality of the flotation products are further improved by magnetic separation. The FM process has been successfully applied in the industrial production of the Dalucao rare earth ore located in Sichuan, China. The average rare earth oxide (REO) grade of the obtained rare earth concentrate was 65% in the latest 12-month production run with an average recovery of 55%.