Abstract: High temperature carbonthermic reduction was used to prepare iron alloy in a electric arc furnace by taking Bayer red mud as main materials, as well, adding laterite nickel ore and coke. The effects of laterite nickel ore and coke contents on reduction rate was studied, as well as, microstructure and hardness of the iron alloy. The results show that a iron alloy with Ti, Ni and Cr elements can be prepared by adding laterite nickel ore in Bayer red mud. The reduction rate of metals increases significantly with the increase of coke content. When the content of laterite nickel ore was 35wt%, the content of coke was 30wt%, the total recovery of the iron alloy reached 84.86%, and the content of Fe, Ni, Cr and Ti was 84.37wt%, 1.14wt%, 2.05wt% and 2.70wt%, respectively. The iron alloy was gray iron, in which Ni and Cr were dissolved in the iron matrix, while Ti and C forming compounds precipitated in massive form.