Paper mill sludge or similar organic sludges with a high ash content are converted by burning the sludge in a cyclone furnace along with another source of fuel. The heat content of the sludge is recovered and the ash content of the sludge is converted to a glassy slag. A flux, such as limestone, may be added to the sludge before introduction into the cyclone furnace. The slag is useful as a construction material, an abrasive, for roofing products, or for other purposes.