Losses of alloying metals in furnace flue dusts, grinding swarfs, and mill scale produced during the manufacture of stainless steel are substantial. About 25 million lb cr, 8.7 million lb ni, and 150,000 lb mo and other critical metals can be made available annually for recycling by a process developed by the Bureau of Mines. Stainless wastes pelletized with a portland cement binder were reduced in a small electric-arc furnace by a two-stage process to produce a recyclable alloy containing cr, ni, mn, and fe. The initial reduction was with carbon; the second, with ferrosilicon. Results are compared with previously reported laboratory induction melting tests. A 2,000-lb demonstration test of the process in a commercial electric-arc furnace is also described. Data are also presented on three 1,500-lb tests, made using various slag conditions in the electric-arc furnace. Recoveries up to 99 pct of the fe, cr, and ni contents of stainless steel wastes were obtained in using the process.