The X-ray source GX301-2 was observed with scintillation proportional counters in binary phase 0.90 to 0.05. Intense iron fluorescent emission and sharp iron K absorption edge appeared in all the spectra, including that of the flare, which occurred on JD 2445814.6. The equivalent width is linearly correlated with column density and this can be interpreted by a simple model according to which cold isotropic gas surrounds a compact source. The pulse fraction was inversely correlated with column density, which suggests smearing by scattering of X-rays in the reprocessing medium. Averaged iron K absorption edge energy was 7.36 + or - 0.02 keV.