Mixture of metallic iron and carbon was made by heating the mixture of iron oxides and fixed carbon separated from heavy oils. Overall reaction rate was faster than that of iron oxides with pure carbon monoxide under similar conditions. It seemed that the direct reduction of iron oxides with carbon layer surrounding throughly all over the surfaces of iron oxide particles took place dominantly evolving carbon dioxde and carbon monoxide simultaneously instead of the reaction between solids through gaseous imtermediates for conventional system of iron oxides and solid carbon. This result could be applied to making iron more effectively than ever and reducing the cost of ironmaking considerably by utilization of light fraction of heavy oil as by-product.