Abstract: Using limonite and anthracite mined in Baotou region as main raw materials to manufacture pellets containing carbon which is used to produce iron nugget by direct reduction technique.The impacts of n_C/n_O,particle size,temperature and heating time on the reduction and melting has been investigated.The analysis of experimental results was carried out.The results showed that temperature and holding time strongly influenced the direct reduction and melting process.When the pellets with n_C/n_O=1.1,limonite and anthracite particle size less than 0.048 mm (320 mesh) was held at 1 370℃ for 5 min,slag and iron nuggets could be separated well,and the reduction rate of product was high.The separated slag can be readily pulverized.The iron nuggets can be used as a kind of steelmaking feed.