Abstract: A method and apparatus for reducing a metal compound particularly iron oxide, by means of a reducing agent comprising CO or H.sub.2 or a mixture of these two gases, of which the average temperature is between 850.degree. C. and 1000.degree. C. and which has been obtained at this temperature by means of a plasma arc heater. The CO and H.sub.2 mixture is preferably obtained by heating a mixture comprising a selection of various reducing agents, including so called Sasol gas, and CO.sub.2 and steam in a plasma arc heater and converting the mixture to CO and H.sub.2.