Abstract: A method of steelmaking in an at least partially refractory lined furnace. The process includes the steps of retaining a portion of a hot liquid slag from a previous heat, and altering the retained slag with basic slag forming material to increase its basicity, melting temperature, and viscosity, and to reduce its melting temperature below the melting point. The altering step is performed before charging ferrous materials for a new heat. Altered slag is then positioned on the bottom of the furnace, or on the furnace walls, or both, using a slag coating technique. Ferrous metal is then charged, after which a second charge of basic slag forming materials may be added prior to and/or during the first controllable oxygen blow. A slagging off step is conducted after less than one-half of the oxygen is introduced into the heat and when the mass of oxygen already introduced is sufficient to oxidize approximately all of the silicon introduced with hot liquid metal charged into the furnace.