Application of proper processing or pre-processing methods for ore enrichment could significantly affect system efficiency as well as final production cost of raw materials. Nowadays, various methods are employed to processes iron ore and coal in industry, with their merits and limitations. Physical separation methods are economically beneficial for ore separation, since they take advantage of particles inherent properties (shape, density, magnetic property, electric property and etc.). These methods could satisfy environmental concerns by elimination of chemicals from processes, if they operate in dry mode. Application of air dense medium fluidized bed, as a novel processing method is expanding. In this study, feasibility of application of air dense medium fluidized bed and effect of parameters on low cost placer iron ore and coal processing was investigated. Design of experiment methods followed by analysis of variance, are used to verify the effectiveness of the parameters, identify statistically significant mutual interactions, and parameter adjustments for optimization of the separation quality evaluators. The Design Expert ® software and full factorial experiment design method was used to evaluate the effect of bed height, air flow rate (superficial air velocity) and separation time on system separation efficiency, concentrate grade and iron recovery to concentrate. Parameter optimization determined through response surface method was further expanded, since parameters were close to their limits. The effect of fluidization medium and feed size was studied under the determined optimum conditions. In general, it is seen that, increase of bed height and air flowrate, and decrease of medium size and separation time decrease favors the separation quality. Acceptable separation for iron ore with 3.4-4.6 mm occurred at 20 second separation time, bed height of 25 cm, air flowrate of 8 l/min and sand medium size of 275 µm. The separation efficiency, product grade and recovery of 42.14%, 61.8% and 83.86 %, respectively. Optimum operating condition for finer iron ore (1-3.4 mm) was determined to be 60 seconds, 25 cm, 80 l/min and 275 µm sands. Such operation resulted in, separation efficiency, product grade and recovery of 48.46 %, 55.58 % and 67.31 %, respectively. For coal sample, lowest ash content for the float section was achieved under T=20 sec, Q=80 l/min to be 21.73 %, meaning 14.72 % ash reduction in respect to head sample.