Abstract: In order to find a reasonable development and utilization program for a beach placer in Indonesia，the direct reduction experiments using CO-H2 gas mixture as reducing gas were conducted in a vertical tubular resistance furnace.Smelting tests on products obtained at optimum condition were conducted.The results revealed that ① both reaction temperature and reduction circumstances can dramatically influence the reaction efficiency，reduction products with iron reduction degree of 96.11% and metallization ratio of 93.40% was obtained at conditions of volume ratio of H2 to CO 7〖DK（〗∶〖DK）〗3，and reducing temperature at 900 ℃ for 80 min.② under the optimum smelting temperature 1 570 ℃，alkalinity 1.2，smelting time 15 min for the reduction products，the recovery of iron reached 92.99%.To sum up，the fluidized gas reduction-high temperature smelting process is an efficient process in developing the beach placer.

Key words: Beach iron placer, Fluidized gas reduction, Fluidized bed, High temperature smelting, Reduction degree, Metallization ratio