Disclosed is a method for producing granules from a powder with separation of fines to produce a powder of more uniform sizing. The method for producing granules from a powder having particle size larger than 150ìm comprises applying a compaction force of between 16 and 60kN to the powder to produce a compacted mass comprising a mixture of fine particles and granules. 75% or less by weight of the powder is compacted into acceptable granules and the rest remains as fine particles and/or small granules. The fine particles are separated from the granules by entraining the fine particles in a gas stream in which the compacted mass flows, and the direction of flow of the gas stream has a component which is contrary or opposite or reverse to that of the direction of flow of the compacted mass. The fine particles are separated from the granules by means of a fractionating apparatus where it has a rotating cone or cylinder along the axis of which the compacted mass is moved using mechanical means in said gas stream. The compaction force is applied to the powder by a process comprising use of a roller compactor to generate a ribbon of compacted powder which is broken up to produce granules.