In this work, a catalytic CVD process using ethanol as carbon source was used to convert an iron rich waste, i.e. red mud (RM), in a magnetic composite. TPCVD (temperature programmed CVD), XRD, Mossbauer, EDS, magnetic measurements, TG/DTA, CHN, BET, Raman, SEM and TEM showed that ethanol gradually reduces the iron phases in the RM to Fe3O4 at 500 degrees C and to Fe1-xO at 600 degrees C. At higher temperatures Fe and Fe carbide are the main phases produced with the formation of large amounts of carbon (30-50 wt%) especially as nanotubes and nanofibers. These magnetic materials can be separated into two fractions by simple dispersion in water, i.e. a settled material composed of large magnetic particles and the suspended material composed of nanoparticles with average size of 10-100 nm. The carbon in the composites can be activated with CO2 increasing the surface area from 79 to 185 m(2) g(-1). The magnetic composites were used as adsorbent of model dyes methylene blue and indigo carmine showing excellent results. The composites were also used as support to produce a recyclable Pd catalyst. Tests for the 1,5-cyclooctadiene hydrogenation showed that the catalyst can be easily magnetically separated from the reaction medium and reused for five consecutive times with no deactivation or change in selectivity. (C) 2011 Elsevier B.V. All rights reserved.