We present an application of the fast Independent Component Analysis method to the COBE-DMR 4yr data. Although the signal-to-noise ratio in the COBE-DMR data is typically $sim 1$, the approach is able to extract the CMB signal with high confidence when working at high galactic latitudes. The reconstructed CMB map shows the expected frequency scaling of the CMB. We fit the resulting CMB component for the rms quadrupole normalisation Qrms and primordial spectral index n and find results in excellent agreement with those derived from the minimum-noise combination of the 90 and 53 GHz DMR channels without galactic emission correction. Including additional channels (priors) such as the Haslam map of radio emission at 408 MHz and the DIRBE 140um map of galactic infra-red emission, the FastICA algorithm is able to both detect galactic foreground emission and separate it from the dominant CMB signal. Fitting the resulting CMB component for Qrms and n we find good agreement with the results from Gorski et al.(1996) in which the galactic emission has been taken into account by subtracting that part of the DMR signal observed to be correlated with these galactic template maps. We further investigate the ability of FastICA to evaluate the extent of foreground contamination in the COBE-DMR data. We include an all-sky Halpha survey (Dickinson, Davies & Davis 2003) to determine a reliable free-free template. In particular we find that, after subtraction of the thermal dust emission predicted by the Finkbeiner, Davis & Schlegel (1999) model 7, this component is the dominant foreground emission at 31.5 GHz. This indicates the presence of an anomalous dust correlated component which is well fitted by a power law spectral shape $ u^{-beta}$ with $beta sim 2.5$ in agreement with Banday et al. (2003).