A method and apparatus for reducing iron oxides using microwave heating in a furnace chamber which is sealed against the entrance of air reduces the energy required and produces a low temperature reduction and allows the recovery of combustible synthetic gas as a byproduct of the process. Avoidance of the reduction of sulfur, phosphorus and silica is also insured, as is the need to reduce the silica content of the feed material prior to reducing the ore. A continuous rotary hearth furnace, a rotary kiln, a linear conveyor and vertical shaft furnace chamber configurations are described. A secondary heating zone can also be included to process the reduced iron into iron nuggets or liquid metallic iron.