an apparatus for directly reducing pellets of material without melting the material includes the transporting of the pellets through drying and preheating zones on an oxidizing traveling grate and reduction in a ported rotary kiln . there is a kiln having a first end and a second end with the first end being substantially adjacent to the heating and oxidizing component for receipt of the pellets therefrom . the kiln is inclined downwardly and is rotated to advance the pellets through the kiln from the first end to the second end thereof . the kiln includes an induration zone for indurating the pellets . the induration zone is adjacent to the first end and remote from the second end and extends for a substantial portion of the kiln from the first end . the kiln includes a reduction zone extending from the downstream end of the induration zone to the second end . a device is used to inject a reducing agent into the reduction zone of its kiln for making contact with the pellets advancing through the reduction zone . the kiln is heated to assist in a reduction of the pellets in the reduction zone . the pellets advancing through the induration zone are substantially free of contact with the reducing agent . the invention also includes the process for directly reducing the pellets of material .