This is a study of the possibility of using the aluminothermic reaction for the treatment of the steel industry by-products consisting of ferric oxides and contamination. The experimenal method consists of mixing of the powder materials followed by initiation of the aluminothermic reaction. The microstructures of the reaction products are analyzed using X-ray diffraction (XRD) and scanning electron microscope (SEM) techniques. Regardless of the composition of the initial oxide mixture, similar reaction products are formed during the reaction. These reaction products are reduced iron and a slag phase consisting of Al2O3, Fe, and FeAl2O4. As a consequence of the high temperature of the aluminothermic reaction, zinc and lead oxides can be separated from the iron phase during the reaction. The remainder of the contamination is either vaporized or burned during the reaction. It is possible that utilization of the aluminothermic reaction offers an energy-efficient, economic process for the recycling of a variety of different by-products containing ferric oxides.