The problem addressed by the present invention is to provide a method for separating and recovering a rare earth element as an oxide from iron group elements by moving a treatment environment into the presence of carbon and carrying out heat treatment after carrying out an oxidation process on a processing target that includes at least the rare earth element and an iron group element, wherein the method is low-cost and whereby an oxide of a rare earth element can be efficiently separated from iron group elements and processing containers can be used repeatedly over a long period of time suppressing consumption and loss of the processing containers. This method, which is a means for addressing the problem, is characterized by mixing the processing target that has undergone oxidation processing with petroleum coke as a source for supplying carbon and accommodating the mixture in a processing container, and by carrying out heat treatment at a temperature of 950 - 1150DEG C (not including 1150DEG C) in an inert gas atmosphere or in a vacuum.