A drum type of high gradient magnetic separator was designed and optimized by computer simulations. The magnetic separator consists of high performance rare earth $(Nd_2Fe_14B)$ permanent magnets and magnetic yokes of extremely low carbon steel interconnecting the permanent magnets. Magnetic circuits of the separator were simulated for the aim of the least cost, highest magnetic strength and most efficient function by using specialized S/W (Vector Field Program) employing the Finite Element Method. The magnetic flux density was provided to be strong enough to collect the invisible fine metal particles from the surface of hot rolled steel plate with the efficiency of almost 95%.