The invented pellet reclamation process includes forming green pellets of a mixture of steel furnace dust, a carbonaceous material such as coal, charcoal, lignite, petroleum coke, or coke, and an organic binder. The green pellets are fed over a layer of burnt pellets on a rotary hearth furnace which successively conveys the pellets first through a drying and coking zone in which the pellets are dried and any volatile matter driven out of the carbonaceous material. The pellets then travel through a reduction zone where the pellets are subjected to a higher temperature at which the contained iron oxide is reduced and remains within the pellets and the zinc, lead and cadmium oxides are reduced, volatilized, re-oxidized and carried off as oxides in the waste gases. The reduced pellets (DRI) are ultimately carried into a discharge zone where they are discharged from the rotary hearth furnace. An apparatus for performing the process is also disclosed.