Abstract: A method for recycling iron values such as the iron which is present in the iron oxide, primarily Fe.sub.3 O.sub.4 found in millscale and other fine or waste materials containing oxides of iron. The method is applicable to basic oxygen refining operations wherein iron is charged to the basic oxygen furnace along with a flux. The method can also be applied to other iron or steel-making furnaces. In accordance with the invention, a portion of the flux charged to the furnace is prepared by forming a mixture of iron or iron containing particles with the balance comprising dolomite, the mixture including sufficient iron values such that the product after calcination will contain in excess of 20 percent and up to 50 percent by weight iron values, calculated as Fe.sub.2 O.sub.3. The mixture is heated in a kiln to a temperature in excess of 2000.degree. F. whereby reaction products such as calcium and magnesium ferrites are formed and make up a substantial portion of the mixture.