In order to explore the commercialized applications of the low-grade bauxite in the refractory industry, a calcination integrated with acid leaching method was adopted to remove the potassium (K) and iron (Fe) from the diaspore-illite (DI) type low-grade bauxite. Following calcining the bauxite at different temperatures, the leaching parameters, including the sulfuric acid concentration, temperature, sulfuric acid to bauxite ratio, and reaction time were systematically studied. The appropriate and economical conditions for removing the impurities were found to be calcining the bauxite at 550 °C, and leaching it with a sulfuric acid solution of 1.2 mol/L, sulfuric acid/bauxite ratio of 9 mL/g at a reaction temperature of 70 °C and reaction time of 2 h, under these conditions, the removal efficiency of K and Fe from the bauxite can reach 30.32% and 47.33%, respectively. The treated bauxite was examined by XRD analysis, SEM observations, and chemical analysis. Kinetics of the removing process were calculated by two models, and the results showed that the leaching process was controlled by the mixed shrinking core model, which was affected by both the diffusion through solid layer and the interface transfer. In summary, the approach in this work presents a promising process for comprehensive utilization of the low-grade bauxite.