The harsh environment rolling element bearings are exposed to in iron-mining industries is replicated in a laboratory scale in this work. Bearings (SKF 7204BEP) were tested both with and without magnetite oxide (Fe₃O₄) contamination. In order to study the interaction between contaminants and extreme pressure additives, the rolling element bearings were lubricated with two different greases: Grease without extreme pressure and grease containing sulphur-based extreme pressure additives. Further, the effect of the contamination–additive interaction on rolling bearing performance and monitoring signals (vibration and acoustic emission) was investigated. The obtained results indicate an advantage of extreme pressure additive in case of the investigated operating conditions. Furthermore, the use of extreme pressure additives decreased wear, surface roughness, vibration and acoustic emission for both test durations of 24 h and 168 h. The decrease of the acoustic emissions and the surface roughness parameter Rq in case of the tests with a duration of 168 h as high as 70% and 60%, respectively using extreme pressure additives in comparison with the plain grease was observed. The major cause for this reduction seems to be the interaction between contaminants and extreme pressure additives.