Magnetization measurements have been made on natural coke-coal samples collected at various distances from a felsic porphyry dike in a coal seam in Dutch Creek Mine, Colorado to help characterize the nature and distribution of the iron-bearing phases. The magnetization passes through a maximum at the coke-to-coal transition about 31 cm from the dike contact. The magnetic measurements support the geochemical data indicating that magmatic fluids along with a high-temperature gas pulse moved into the coal bed. Interaction of the magmatic fluids with the coal diminished the reducing power of the thermal gas pulse from the dike to a point about 24 cm into the coal. The hot reducing gas penetrated further and produced a high temperature (similar to 400-525 degrees C) zone (at about 31 cm) just ahead of the magmatic fluids. Metallic iron found in this zone is the principal cause of the observed high magnetization, Beyond this zone, the temperature was too low to alter the coal significantly.