Abstract: A novel process and apparatus are provided for deoiling and agglomerating mill scale to form deoiled pellets suitable for use in a sinter mix without objectionable evolution of oil vapors during the sintering process. In general, the process comprises (a) forming a mix of oil-bearing mill scale and calcined lime fines; (b) balling the mix to form green mill scale-lime pellets; and (c) heating the green pellets in an oxidizing atmosphere to a temperature sufficient to effect ignition and substantially complete combustion of the oil in the pellets. In most cases it is preferred to dry the green pellets from step (b) at a low temperature prior to heating in step (c).