A process for the production of liquid ferric sulfate from finely-divided ferric oxide, sulfuric acid and water in a closed reaction vessel at temperatures ranging from about 130.degree. C. to about 150.degree. C. and pressures from about 30 psi to about 70 psi. The reaction time ranges from Four to eight hours and produces liquid ferric sulfate having at least 10% trivalent iron. Yield and efficiency are provided by controlling the specific gravity prior to the reaction and by counter current cycling the waste stream from the reaction through the dilution water and use of a polymeric settling agent to remove unreacted iron content from the digester output.