Using the MagNet software package, a permanent magnetic circuit was simulated and a sectorially-spliced magnetic system was designed. Consequently, a new roller permanent magnetic separator with different magnetic field intensities in each roller was developed. The modular structural design allows fine-grained minerals with different magnetic susceptibility to be separated in one pass, according to their different processing characteristic. Steel slag, selected from a factory, was crushed, ground and sieved into different particle size ranges for the single-factor magnetic separation experiments. It was determined that the optimum value ranges for the particle size, magnetic separation distance and rotating frequency were 0.15 mm-0.3 mm, 10 mm-12 mm, 40 Hz～60Hz, respectively; using the chosen parameter values of 0.2mm, 11mm, and 40Hz, the concentrate recovery and concentrate grade of the new separation technology reached up to 52.78% and 64.74%, in comparisson with the existing technology. Thus, it was demonstrated that the self-developed separation technology has the potential to improve the iron recovery of the fine-grained steel slag.