Abstract: A process of producing iron from fine-grained iron ore by direct reduction, which includes adding oxygen, sponge iron and at least one of coal fines and low-temperature carbonized coal to an iron bath in a melt gasifier to produce a reducing gas, regulating the temperature of the reducing gas by blowing coal fines into it to produce a cooled reducing gas and a low-temperature carbonized coal, separating the low-temperature carbonized coal from the cooled reducing gas in order to use the separated low-temperature carbonized coal in the melt gasifier, preheating a fine-grained iron ore with a used reducing gas containing carbon monoxide to a temperature from 450.degree. to 700.degree. C., and reducing the preheated fine-grained iron ore with the cooled reducing gas at a temperature from 700.degree. to 1100.degree. C.