Red mud, an insoluble residue produced during alkali leaching of bauxite, is considered as a low-grade iron ore containing 30% to 50% iron. The present paper deals with the use of thermal plasma technology for producing pig iron from red mud waste fines. The smelting reduction of red mud was carried out in a 35 kW DC extended arc thermal plasma reactor. Red mud was properly mixed with fluxes and graphite (fixed carbon, 99%) as a reductant as per stoichiometric requirement. The effect of various process parameters like a reductant, fluxes and smelting time on iron recovery was studied and optimized. An optimum condition for the maximum recovery of iron was obtained. A new thermal plasma process applicable to direct iron making from red mud waste fines that would achieve significant utilization of red mud was proposed. Red mud, an insoluble residue produced alkali leaching of bauxite, is considered as a low-grade iron ore containing 30% to 50% iron. The present paper deals with the use of thermal plasma technology for producing pig iron from red mud waste fines . The smelting reduction of red mud was carried out in 35 kW DC extended arc thermal plasma reactor. Red mud was properly mixed with fluxes and graphite (fixed carbon, 99%) as a reductant as per stoichiometric requirement. The effect of various processes parameters like a reductant, fluxes and smelting time on iron recovery was studied and optimized. A new thermal plasma process applicable to direct iron making from red mud waste fines that would achieve significant utilization of red mud was proposed.