PURPOSE: To recover unconsumed carbonaceous reducing agents with good efficiency by separating reduced iron from the mixture consisting of reduced iron, carbonaceous reducing agents and fluxes discharged from a reducing furnace then introducing the balance into an underwater granulator, adding emulsifying liquid thereto and granulating the carbonaceous reducing agents.

CONSTITUTION: The mixture consisting of reduced iron, carbonaceous reducing agents and fluxes discharged from a reducing furnace 1 is cooled with a cooler 2 and the reduced iron is separated in a separator 3. The remaining carbonaceous reducing agents and fluxes are fed into a slurry forming device 4, where water W and a precoating agent P are added thereto and a slurry is formed. This slurry is fed into an underwater granulator 6. Emulsifying liquid is charged from an emulsifying tank 5 into the granulator 6, and the carbonaceous reducing agents are granulated with this emulsifying liquid as a binder. The fluxes are fed together with waste water into a settling tank 7. The separated carbonaceous reducing agents are returned to the furnace 1 and are reused.