Iron and titanium resources are quite rich in Ziyang County (southern Shanxi Province of China), while the overall grade is low and mineral compositions are complex. Experimental study using the conventional magnetic separation method was firstly carried out to separate iron and titanium concentrate respectively, and ultimately, after a series of conditional experiments, both iron and titanium cannot meet the market demand for qualified concentrate. In order to make maximum use of resources in this area, an innovative attempt of preparing the heavy medium powder using the resources directly was made and its application in the recovery of coal slime was proved to be successful. Through the new method, the exploitation and utilization of iron and titanium resources in this area could be realized with huge economic benefits.