Magnesia rich magnesium aluminate spinel is extensively used as a shaped refractory for application in cement rotary kilns, steel ladles and in various secondary refining vessels of steel making processes. The conventional sintering process of refractory for development of spinel phase and its densification requires anything 415 between 10  12 hours in a normal furnace involving a long range heating schedule. However, the present invention relates to a process by which magnesia rich magnesium aluminate spinel can be formed and densified through thermal plasma processing utilizing Indian natural magnesite and alumina.The major advantages of thermal plasma fusion over others are that it promotes rapid densification and quick 420 formation of spinel phase accompanied by high through put in a very short period of time and generates a clean reaction atmosphere for production of high pure materials.