PURPOSE: To enable the tile permanent magnet to show high magnetic characteristics, and to make it possible to manufacture the magnet in the atmosphere of large partial pressure of oxygen by a method wherein the boundary of alloy powder is covered by the compound containing silicon and oxygen.

CONSTITUTION: A master alloy is formed by fusing the material having the compositional formula Nd13.5FebalCo6GaGal in an Ar atmosphere using an arc fusing furnace. The obtained alloy is pulverized, water glass (20%Na2, 0.4 SiO2 aqueous solution) is added, they are uniformly mixed, and after the mixture has been dried up in a furnace, a cylindrical molded body is formed cold. This molded body is compressed, brought into the state of high density in an Ar atmospheric air using hot pressing, and a compact magnet is manufactured. Then, a plastic-worked magnet is formed by compressing the highly densed material in axial direction in a state wherein the side face of the material is not restricted.