I was informed that after removing lighter non-Ti-Fe gangue minerals, Titanomagnetites are reduced in Plasma furnace or Magma smelter to pig iron and Ti rich slag. From Ti rich slag either Ti sponge or TiO2 may be produced.
By combined pyro- and hydrometallurgical processing route. The ore, selective reduction smelting so that most of the iron to the metal phase and the vanadium and titanium to the slag phase.
The answers given above are essentially correct. Basically this is smelting of low grade Ti ores (or perhaps Ti contaminated Fe ores). Huge deposits of 'iron sands' are present on the beaches of New Zealand's north island so it may be worthwhile to have a look at the web pages of NZSteel to see a description of the overall process they use.