A process for recovering iron from iron-bearing materials including steel mill waste and iron-bearing ores. The process includes the steps of providing a mixture of iron-bearing materials having iron oxides therein and carbonaceous material. Blending with the mixture an organic binder. The mixture is then agglomerated to form green compacts. The green compacts are then loaded into a preheated rotary hearth furnace void of compacts to form a layer of compacts no more than about two compacts high. The green compacts are heated for about 5-12 minutes at a temperature of between about 2200-2500° F. to reduce the compacts and evolve undesirable oxides from the compacts. The reduced compacts are then discharged from the rotary hearth furnace whereupon they are soaked to provide additional time for reaction to achieve 99% or more reduction of the iron oxides. The metallized iron compacts may then be cooled or transported hot to a steel making operation.