The paper presents the results of the carbothermic reduction of the titanomagnetite concentrate from processing waste of Khibiny apatitenepheline ores of the Kola Peninsula. The advantage of granulated charge as compared with non-granulated charge has been proven in experiment. A possibility to use organic binding material (PVA adhesive and Na-carboxymethyl cellulose) rather than traditional binder has been shown. The separation of metal fraction from slaq due to grain sizing makes it possible to recover about 70 percent iron in the form of cast iron granules has been established.