In this paper, the process of direct reduction roasting using magnetic separation to produce direct reduction iron (DRI) from high-phosphorus oolitic hematite, using coal slime and blast furnace dust as reductant, is investigated. The possible use of slime coal and blast furnace dust as reductant and the dephosphorization behavior during the process of direct reduction was studied. Experimental results showed that both blast furnace dust and coal slime can be used as reductant under certain conditions in the process. The dephosphorization mechanism of blast furnace dust and coal slime were investigated by X-ray diffraction (XRD) and scanning electron microscope (SEM)-energy dispersive X-ray spectroscopy (EDS). A DRI with 91.88 wt. % iron grade, 88.38% iron recovery and 0.072 wt. % P can be obtained with 30 wt. % blast furnace dust as reductant. The program not only used blast furnace dust but also recovered iron from blast furnace dust and high-phosphorus oolitic hematite. The analysis results revealed that phosphorus is distributed in gangue mineral and fluorapatite when blast furnace dust is used as reductant. Phosphorus-bearing minerals were not reduced to phosphorus element when the blast furnace dust was the reductant, but part of the fluorapatite reduced to phosphorus which smelt into metallic iron with coal slime as reductant. This led to a high phosphorus content of DRI. This research could provide support to the idea concept for recycling of carbon-containing solid waste and to assist the effective recovery of refractory iron ore by direct reduction-magnetic separation.