PURPOSE: To develop a rare earth-Fe-metallic nitride type alloy having magnetic anisotropy by subjecting an oxide in a powdery mixture raw material of rare earth metals, iron and the other metals, a part of which is present as the oxides, to Ca reduction and thereafter nitriding treatment.

CONSTITUTION: A powdery mixture raw material with the average particle size of ≤75 μm composed of rare earth metals (SE) including Y, Fe and metals (TM) such as Co, Ni, Cu, Zr, Ga, Hf, Ta, Nb, Ti, Si, Al, V, Mo, Cr, Zn, Sn, a part of which is composed of the oxides, is mixed with metallic Ca powder as a reducer for the oxides, and this mixed raw material is tempered to reduce the metallic oxides with Ca to form into an SE-Fe-TM type alloy. This alloy is evacuated, dehydrogenated and thereafter subjected to ntriding treatment in an atmosphere of a gaseous mixture of N2+H2 or gaseous NH3, and finally, CaO formed by the Ca reduction of the metallic oxides and unreacted excess metal Ca are removed with water to develop an alloy of SE2Fe17-XTMXNY (where X is 0 to 10, and Y is >0 to 5) having magnetic anisotropy in the axial direction of C.