With a growing population on earth the amount of end-of-life vehicles (ELVs) and other scrap steel increases. The European Directive 2000/53/CE” requires a minimum of 95 % reuse and recovery and 85 % re-use and recycling no later than 1 January 2015, for end-of life vehicles. This imposes a need for more efficient recycling and recovery. Despite this shredder residue (SR) is commonly land filled. This report investigated the magnetic fines residue generated at Stena Metall shredder facility in Halmstad, Sweden. Magnetic fines is a complex material containing e.g. ferrous metals, non-ferrous metals, glass, plastic, rubber, polyurethane, sand, dirt, brominated flame retardants and PCB. Characterisation of the material and discussion around area of application resulted in suggestions for possible recycling alternatives. Characterisation included e.g. particle size, total organic content, x-ray fluorescence, x-ray powder diffraction and elemental analysis with a focus on the metals. The results indicated a higher organic content in larger particles and an increasing content of e.g. lead, cadmium and mercury in smaller particles. X-ray fluorescence can be used to measure lead in magnetic fines. The conclusion was that the combustible organic content needs to be separated before further metal recycling can be applied. If magnetic fines should be used in construction pollutants probably either needs to be removed or encapsulated to prevent exposure to humans and environment.