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The benefits and advantages of the process comprising the present invention are achieved by forming a substantially uniform mixture composed of controlled amounts of a finely-particulated molybdenite concentrate consisting predominantly of molybdenum disulfide and a finely-particulated iron bearing material including metallic iron and iron oxide. When iron oxide is employed as all or a portion of the iron bearing material, an appropriate quantity of particulated carbon is added to the mixture as a reducing agent for the iron oxide. The resultant mixture is agglomerated into a plurality of shape-retaining pellets which thereafter are heated to an elevated temperature ranging from about 1800° F. to about 3100° F. for a period of time sufficient to effect a dissociation of substantially all of the molybdenum disulfide while subjected to a pressure of less than about 10 Torr so as to form metallic molybdenum. The sulfur and other volatile gaseous constituents are continuously withdrawn and the heating is continued to effect a further reduction of any iron oxide constituent present which thereafter is alloyed with the metallic molybdenum constituent producing a ferromolybdenum alloy in the form of relatively dense sintered pellets. The pellets are cooled to a temperature such as about 570° F. or below and thereafter are extracted from the vacuum smelting furnace.

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