Abstract: Energy for melting iron oxide or wustite is supplied by pre-heated natural gas which is combusted with oxygen in gaseous form and the oxygen contained in the preheated feed materials. Such combustion produces carbon monoxide and hydrogen gas, thus the combustion products are carbonizing to molten iron. The carbon monoxide and hydrogen evolved at the surface of the molten metal is post-combusted above the bath to form a mixture of carbon monoxide, carbon dioxide, hydrogen, steam and nitrogen. The heat generated by this post-combustion is sufficient to supply the energy for all chemical reaction requirements as well as to melt the wustite charge or smelt the preheated iron oxide charge.