PURPOSE: To obtain an excellent raw material for a permanent magnet contg. rare earth metals and boron by melting a mixture of the oxide of rare earths, the oxide of other metals and the oxide of boron, thereafter rapidly cooling the molten material, adding a reducing agent thereto, bringing them into heating reaction with and thereafter executing wet treatment.

CONSTITUTION: The oxide of Nd, Sm and other rare earth elements, the oxide of Fe, Ni, Co and other metals and boron oxide are mixed, and this mixture is heated and melted and is thereafter rapidly cooled to make a mixed solidified material. To this mixed solidified material, as a reducing agent for the above various oxides, alkali metals such as Na, K and Li or alkaline earth metals such as Ca, Mg and Ba and their hydrides are added, and they are sufficiently mixed. This mixture is heated in vacuum or in the atmosphere of an inert gas such as Ar and is brought into reducing reaction with to manufacture a rare earth-metal-boron series alloy. At this time, the remaining reducing agent or by-produced CaO or the like are removed by water treatment, by which the rare earth-metal-boron alloy with the shape of fine powder suitable as a raw material for a permanent magnet can easily be manufactured.