Abstract: A continuous process of manufacturing black powder and black powder substitute using a twin screw extruder is disclosed. Guar gum mixed with the composition at a concentration in the range from 0.05% to 0.5%, by weight, dramatically reduced the friction in the dies and permitted extrusion of the powder at much lower water levels. Different size dies used in combination with face cutting of the extruded strands produce various sized granules. The process can be operated remotely and automatically. The process reduces the number of buildings, equipment and personnel required to manufacture black powder or black powder substitute. The process produces more uniform and reproducible particle sizes.