This invention relates to a novel porous, sulpha sponge iron compound derived from haematite having the following composition given below: and having trace elements such as Au, Pt and Ag therein,by dissolving said haematite in concentrated hydrochloric acid. The acidic solution is treated with alcoholic ammonia and glacial acetic acid. The sulpha sponge iron compound has Fe2/Fe3 cores forming interstatially stabilized clusters. The invention also includes a process for desulphurising natural gas by adsorbing sulphur containing contaminants in the novel sulpha sponge iron compound either at the drilling site or on a bed containing the same.