Abstract: Disclosed herein is an apparatus and a method for manufacturing an iron block from iron pieces generated during a machining process. The apparatus includes: a hopper through which chip-shaped iron pieces are introduced; an agitator positioned below the hopper, which includes one or more inlets in an upper region thereof and an outlet in a lower region thereof, and which includes an impeller internally mounted on a center shaft and rotated therearound so as to agitate the iron pieces, silicate of soda and water introduced through the inlets; and a forming unit positioned below the outlet of the agitator and including a heating wire embedded in an inner wall thereof. The invention has advantages of minimized weight loss and increased hardness, and the moisture content contained in the iron block is minimized, thus avoiding a decrease in hardness attributable to corrosion during the storage and the transportation.