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A system and a method for separating rare earth element compounds from a slurry of mixed rare earth element compounds, comprising flowing the slurry of mixed rare earth element compounds through at least a first channel rigged with at least a first magnet along a length thereof and connected to at least a first output channel at the position of the magnet, and retrieving individual rare earth element compounds and/or groups of rare earth element compounds, separated from the slurry as they are selectively attracted by the magnet and directed in the corresponding output channel according to their respective ratio of magnetic susceptibility (Δχ) to specific density (Δρ).