Nd-Fe-B sintered magnet scrap powders, viz. "sludge", as produced in the sizing and polishing processes for well-shaped magnets of small-sized motors and other equipments were effectively recovered as the raw powders for isotropic Nd-Fe-B bonded magnets (B-r = 0.66T, H-cj = 0.92 MA/m, and (BH)(max) = 70 kJ/m(3)) by means of Ca metal reduction and melt-spun.