PURPOSE: To effectively prevent reoxidation of products and obtain reduced iron in a short time by cooling the reduced iron obtained by charging raw materials in a floating carbon layer by heating gas and allowing the raw materials to sediment by means of reducing exhaust gas.

CONSTITUTION: The powder ore and pulverized coal being charged into a flotation type reducing furnace 1 are effectively reduced without sintering in a floating layer by the heating reducing gas from a preheater 8, after which they are sent to a cooling furnace 2. The reducing exhaust gas from the furnace 1 is cooled with a cooler 3 with a dust remover and part thereof passes through a fan 4 and is heat-exchanged with the exhaust gas from the cooler 2 in a heat exchanger 4. This gas is then circulated to the reducing furnace 1. Other part is circulated to the cooler 2 through a regulating valve 10. In the cooler 2, the reduced iron having been effectively cooled by the water cooling on the outer side and the foregoing reducing gas is obtained. The char separated in the cooling furnace 2 is recovered as carbon material and charged into the reducing furnace 1 through a recovering device 11. Such constitution prevents reoxidation because the reduced iron is rapidly cooled with good heat efficiency and enables the reduced iron to be obtained in a short time.