The invention relates to a binder for metal powder ore cold consolidation so as to substitute for sinter ore and an application method thereof, in particular to a binder for powder ore cold consolidation of metal such as silicon, manganese, nickel, chromium and the like, which comprises two kinds of components of A component and B component, wherein the A component comprises adhesive, curing agent and modified settled dust, and the B component is initiator. With the binder, various powder ore pellets (block) can be prepared, and a composite pellet containing powder ore, slagging medium and reducing agent can be prepared according to the smelting ore proportioning ratio; the product can be taken as smelting furnace charge of ferroalloy (such as silicon alloy series, manganese alloy series, nickel alloy series, chromium alloy series and the like), and completely substitute for sinter ore. The cold consolidation process of the binder for powder ore is simple, the secondary resource can be fully utilized through the unique bond mechanism, all the auxiliary products in the alloy production can be fully utilized, thus really realizing environment-friendly production without three wastes, and also facilitating the reduction of the production cost.