The invention provides a method and device for oxygen-rich powdered coal to conduct reduction and melt separation on a nickel laterite ore. The method for the oxygen-rich powdered coal to conduct reduction and melt separation on the nickel laterite ore comprises the steps of conducting drying treatment on the nickel laterite ore; conveying the dried nickel laterite ore to a rotary kiln to conduct roasting pre-reduction and obtaining high temperature calcine; adding the high temperature calcine into an oxygen coal side-blown electric heat melt separation furnace, meanwhile adding a melting agent, and using multi-path spray guns which are arranged on the two sides of the oxygen coal side-blown electric heat melt separation furnace to spray oxygen-rich air, a reducing agent and fuel into the oxygen coal side-blown heat melt separation furnace to generate a molten pool melting reaction, and obtaining a nickel-iron alloy and melting slag; and discharging the melting slag from a slag outlet of the oxygen coal side-blown electric heat melt separation furnace, and discharging the nickel-iron alloy from a metal outlet of the oxygen coal side-blown electric heat melt separation furnace. The method and device for oxygen-rich powdered coal to conduct the reduction and melt separation on the nickel laterite ore can meet the heat requirements of the oxygen coal side-blown electric heat melt separation furnace under the condition that less heat is supplied, and smooth operation of the molten pool melting reaction can be guaranteed.