Abstract: The furnace and process disclosed herein comprise an extended arc furnace having at least one electrode with an axial opening therein through which an appropriate gas, such as argon, may be fed into the extended arc, and a substantially vertical reaction zone above the extended arc through which a particulate charge is fed by gravity into the extended arc zone and in its downward course through the reaction zone the particulate charge is heated and, if desired, a reaction such as reduction may be effected. The rate of gas flow upward in the reaction zone is slow enough to permit free falling of the particulate charge but fast enough to suspend the particles for the heating and reaction time desired. The axial electrode opening or openings are of a size to permit creation of a stabilized extended arc and to give reduced electrode consumption, improved current and voltage wave forms, and the furnace power may be modulated by changing either the rate of gas flow or the composition of the gas.