Charlie: Iron ore consists primarily of iron oxide minerals such as magnetite, made of approx. 60% iron (Fe) plus oxygen. The goal is to separate the oxygen from the iron, which takes a lot of energy input in the form of heat, thus the furnace. You heat iron ore in the presence of carbon and flux, the carbon 'steals' the oxygen from the iron, leaving the iron behind. The carbon and oxygen combine to form carbon monoxide gas which goes away. Aluminum smelting is a similar process. This is the simplified and basic explanation.
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