We have developed a case study on the use of constrained inversion of magnetic data for recovering ore bodies quantitatively in the Macheng iron deposit, China. The inversion is constrained by the structural orientation and the borehole lithology in the presence of high magnetic susceptibility and strong remanent magnetization. Either the self-demagnetization effect caused by high susceptibility or strong remanent magnetization would lead to an unknown total magnetization direction. Here, we chose inversion of amplitude data that indicate low sensitivity to the direction of magnetization of the sources when constructing the underground model of effective susceptibility. To reduce the errors that arise when treating the total-field anomaly as the projection of an anomalous field vector in the direction of the geomagnetic reference field, we develop an equivalent source technique to calculate the amplitude data from the total-field anomaly. This equivalent source technique is based on the acquisition of the total-field anomaly, which uses the total-field intensity minus the magnitude of the reference field. We first design a synthetic model from a simplified real case to test the new approach, involving the amplitude data calculation and the constrained amplitude inversion. Then, we apply this approach to the real data. The results indicate that the structural orientation and borehole susceptibility bounds are compatible with each other and are able to improve the quality of the recovered model to obtain the distribution of ore bodies quantitatively and effectively.