A system for processing scrap material that includes a variable-power electromagnetic drum separator wherein shredded scrap material is placed in free fall at a position proximate the electromagnetic drum separator. A first fraction of the scrap material is attracted to the electromagnetic drum separator and is carried under the rotational axis of the electromagnetic drum separator thereby separating the first fraction of material from a second fraction of the material which continues to free fall and wherein the first fraction is a low-copper ferrous material with the second fraction having a higher non-ferrous content than the first fraction. A magnetic drum separator may be positioned upstream of the variable-power electromagnetic drum separator and be used to separate non-ferrous materials. The variable-power electromagnetic drum separator may be adjusted so that the second fraction includes some ferrous material. A robotic picker may be used to remove undesirable materials from the second fraction.