A method is provided for separating superalloy metal powder from contaminants, such as process-produced contaminants, by enhancing the magnetic properties thereof, such as by oxidizing or leaching of chromium, for example, followed by magnetic separation of the contaminants from the superalloy metal powder to thereby enhance the concentration of the contaminants. Heating conditions or mechanical agitation or both are employed to resist agglomeration of the metal powder before magnetic separation thereof from the contaminants. Certain preferred times and temperatures are disclosed.