For many years, the search for alternative technologies of iron production from mineral raw materials without using expensive coke, natural gas and with the lowest impact on the environment has been a crucial task for metallurgical scien- tists. Technologies with maximum recovery of iron from ore, minimum pollution of the atmosphere and use of cheap and less deficit reducers as, for instance, power generating coal are required. A new method of direct iron production by solid reduction of fine materials, including ground ore, concentrate, iron-bearing sludge, etc., in the direct-current electric-arc furnace has been recently developed and tested in laboratory conditions in VNIIMT. This technology enables to produce iron with 3…4% carbon content in the molten state that can be granulated, cast in pigs and processed into steel in the ladle furnace from the molten state with minimum specific yield of gas and slag.