Re: How is Hematite mined? - MadSci NetworkJan 20, 2004 . Typically, hematite is mined by open pit mining. Overburden is . The material is about 35% iron and is processed into pellets. The next step in.how is hematite processed,Hematite - WikipediaHematite, also spelled as haematite, is the mineral form of iron(III) oxide (Fe2O3), one of . Clay-sized hematite crystals can also occur as a secondary mineral formed by weathering processes in soil, and along with other iron oxides or.