In this study, production of sponge iron by direct reduction of oxides and the effect of reductant on metallization were investigated. In the first stage of the study, scale formed during hot rolling of slabs was reduced in a rotating furnace using solid and gas reductants. Coal was used as solid reductant and hydrogen released from the combustion reaction of LNG was used as the gas one. The sponge iron produced by direct reduction was melted and solidified. In the second stage, Hematite ore in the form of pellets was reduced using solid carbon in a furnace heated up to 1,100 degrees C for 60 and 120 minutes. Reduction degree of process was evaluated as a function of time and the ratio of C-fix/Fe-total. In the third stage, final products were examined using scanning electron microscope and microanalysis was carried out by energy dispersive x-ray spectrometer attached to the electron microscope. It is concluded that (i) direct reduction using both solid and gas reductants caused higher metallization compared to using only solid reductant, (ii) as the reduction time and ratio of C-fix/Fe-total increased %-reduction of ore increased.