You need to be kinda careful with aluminum dust...add iron oxide powder to it and you have a product that will burn very hot...it will melt steel. Google "thermite".
I wouldn't worry much about impurities in it unless there are a lot. I'm guessing here, but you might be able to float wood contamination off by putting the stuff in water. A magnet will pull out the steel.
Melting is a non-starter. For some reason, yards are very reluctant to deal with products melted in a backyard foundry, with the common excuse that there may be "other" things hidden in the ingot, like steel and rocks. And with aluminum powder, you will have huge oxidation problems--most of the metal will turn into aluminum oxide and you will lose it.
Find a yard that will take it as-is.
Jon.
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