A major operating cost in dense-medium separation is in replacement of lost medium solids. The loss of medium solids, being costly, plays a crucial role in determining the economics of any preparation operation. Coal washeries that employ dense-medium cyclones often attempt optimization of the processes by varying the vortex or the spigot diameter and the feed relative density. While these changes help in closer control of the separation process, they also result in medium losses due to changes in the medium split ratio (ratio of the medium flow rate in overflow to underflow). Since medium solids are lost by adhesion to products and as magnetic separator effluent, the effect of the change in medium split ratio on the drain-and-rinse screens and, hence, the magnetic separator circuit needs to be studied. In Tata Steel's coal washeries, at Jharkhand India, which employs primary and secondary dense-medium cyclones in series to produce clean coal, middlings and rejects, reducing the relative density of feed medium, had an insignificant effect on the medium split ratio. On the other hand, changing the cone ratio (ratio of the overflow diameter to the underflow diameter) changed the relative density and the flow rates through the cyclone outlets, thus affecting the performance of the magnetite recovery circuit. A systematic study through laboratory tests and a detailed plant sampling campaign helped in identifying the causes of magnetite loss. Upon implementation of the recommendations, the magnetite losses decreased, resulting in a saving of approximately US$27,500 per annum. The study also helped in evolving some checkpoints for plant operators for identifying magnetite losses. © 2006 Elsevier B.V. All rights reserved.