Kainite mixed salt is treated with water to obtain solid schoenite and a schoenite end liquor. The latter is desulphated using recycled CaCl2 and thereafter evaporated to obtain camallite crystals, from which KCl is recovered, and a liquor rich in MgCl2. Gypsum produced during desulphatation is reacted with aqueous ammonia and CO2 to produce ammonium sulphate and calcium carbonate. The calcium carbonate is calcined to obtained CaO and CO2. The CaO is slaked and reacted with the MgCl2-rich liquor generated above to produce slurry of Mg(OH)2 in aqueous CaCl2. To this surface modifying agent is added while hot and, after cooling, the slurry yields surface modified Mg(OH)2. The filtrate rich in CaCl2 is recycled for desulphatation process above. The solid surface modified Mg(OH)2 may he calcined to produced MgO. The schoenite and KCl are reacted to produce solid sulphate of potash.