Bauxite is the common raw material for aluminum and refractory industry. There are a huge number of researches on bauxite beneficiation served the aluminum industry, whereas very few studies are reported on the purification of bauxite from the refractory point of view. In fact, the bauxite with low ratio of Al/Si and high content of impurity is more suitably used as raw material for refractory industry after beneficiation and purification. In this work, the removal of iron and potassium in the diaspore-illite (DI) type low grade bauxite was studied, and a calcination-leaching method was adopted. In summary, the approach in this work presents a promising process for comprehensive utilization of the low-grade bauxite.