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This process followed for production of Sponge Iron is the Coal Based Process that uses non-coking coal along with lumpy rich grade iron ore as raw materials.

This non-coking coal plays a dual role as a reducing agent as well as fuel to maintain the requisite Kiln temperature. Small amounts of Limestone may also be needed as de-sulphurising agent.

The process methodology of Direct Reduced Iron is as follows:
Reduction is carried out in an inclined horizontal rotary kiln, which rotates at a predetermined speed.
Throughout production process, a temperature profile ranging from 800-1050 degree centigrade is maintained. As the material flows down due to gravity, the ore gets reduced. The oxygen in the Iron Ore is removed and combined with the Coal and is converted to Carbon monoxide which is purified and released.
The hot reduced sponge iron along with semi burnt coal is discharged from kiln. They both are cooled in water-cooled cylindrical rotary cooler to a temperature of 100-200 degree centigrade.
The discharge that emerges from cooler is sponge iron. The same passes through magnetic separators so that pure sponge iron can be segregated from other impurities.