The Bureau of Mines used 50- and 800-kva electric-arc furnaces to confirm the feasibility of producing ferronickel in electric-arc furnaces from prereduced concentrate from the Yugoslavian Feni Project. The relationships were established among metallic iron concentrations (degrees of prereduction), ferronickel grades, and nickel recoveries. Smelting the concentrate containing 1.27 wt-pct nickel and metallic iron levels between 2 and 3 wt-pct, produced 15 to 20 pct ferronickel. Higher or lower metallic iron concentrations were compensated by adding oxide pellets or carbon to the electric- arc furnace charge. Over 90 pct of the contained nickel was recovered when up to 20 pct ferronickel was being produced. Data obtained while smelting 16 tons of prereduced concentrate in the 800- kva electric-arc furnace indicated ferronickel can be recovered at an energy consumption of 530 kwhr/ton of prereduced material.