The invention provides a method for recovering iron from high-iron bauxite. The method comprises the steps that S1, high-iron bauxite powder is placed in a closed reduction furnace, flare gas is introduced into the reduction furnace, heating reduction is conducted, and reduction materials are obtained; and S2, the reduction materials are ground and then subjected to magnetic separation, thus magnetic separation concentrate and magnetic separation tailings are obtained, the magnetic separation concentrate is iron concentrate, and the magnetic separation tailings are aluminum oxide enrichment ores. The iron in the high-iron bauxite can be recovered, meanwhile, the flare gas is utilized, and atmospheric pollution generated by flare gas burning of petrochemical enterprises is avoided. The invention further provides a method for extracting aluminum from the high-iron bauxite. The method comprises the steps that A1, the high-iron bauxite is treated through the method for recovering the ironfrom the high-iron bauxite, and thus magnetic separation concentrate and magnetic separation tailings are obtained; A2, the magnetic separation tailings, ammonium sulfate and water are evenly mixed and then roasted to obtain roasted clinker; and A3, the roasted clinker is dissolved out and separated to obtain an aluminum-containing solution and aluminum-extracting slag. Iron, the aluminum and silicon in the magnetic separation tailings are separated, and the purpose of comprehensive utilization of the high-iron bauxite is achieved.