Abstract: The invention is directed to a process which consistently produces a ferromolybdenum alloy useful as a furnace additive with a molybdenum content of at least 50% by weight and a carbon content of not more than 0.1% by weight with a high recovery of molybdenum. In the process which may be carried out in an electric arc furnace, a charge of molybdenum oxide concentrate, lime and a carbonaceous reducing agent such as coke is fed to a bath containing iron suitably covered by a layer of slag. The coke is fed in an amount sufficient to reduce the molybdenum oxide which itself is added in an amount to provide the required property of molybdenum in the alloy. Molybdenum in the slag is stripped with a carbonaceous material such as coke in order to enhance the overall recovery of molybdenum in the process. The process itself can be carried out either on a batch or continuous basis.