Lignite samples, taken from Kutahya-Seyitomer Power Plant, were used for devolatalisation arid desulphurisation experiments, by means of mild pyrolysis followed by High Intensity Dry Magnetic Separation. Pyrolysis experiments were performed in a modified Heinze Retort and important parameters of process, temperature, heating rate and residence time, were studied to determine the optimum conditions. At optimum conditions of pyrolysis, final temperature of 450 degrees C, hearing rate of 7 degrees C/min and residence time of 30 min, up to 61.04 % of sulphur reduction was obtained with 57.11 % combustible recovery depending on particle size. Char, obtained at optimum conditions of pyrolysis experiments, was further cleaned by a Permroll HIDM separator. Sulphur reduction enhanced up to 86.55 % with 22.67 % ash, 0.88 % sulphur content and 46.09 % combustible recovery, depending on particle size. (C) 2000 Elsevier Science Ltd. All rights reserved.