Abstract: Improved operation of the broadly known combination of a moving bed, gaseous reduction reactor for reducing iron ore and a melter-gasifier for converting to molten metal the sponge iron pellets produced in such a reactor is achieved by preparing a mixture of finely ground sponge iron and coal, either by mixing the sponge iron and coal and then grinding or by separately grinding the sponge iron and coal and then mixing, and feeding the mixture of finely ground coal and sponge iron, along with elemental oxygen, to a point below the surface of a molten metal bath within the melter-gasifier.