A process and apparatus for producing a low sulfur content hot reducing gas by desulfurizing hot reducing gas by contacting the sulfur-bearing hot reducing gas or carbonaceous material with a particulate calcium oxide desulfurizing agent to thereby produce a product gas stream and a byproduct calcium sulfide composition, and then recovering sulfur from the calcium sulfide composition by contacting the calcium sulfide composition with hot liquid water at a temperature and corresponding pressure sufficient to maintain steam in the system and wherein a major portion of the calcium sulfide composition has a particle size of less than about 6 mesh to thereby convert the sulfide to calcium hydroxide and hydrogen sulfide. A preferred process uses this low sulfur content gas to reduce iron ore, and especially wherein ore, calcium oxide and carbonaceous material are reacted in a shaft furnace.