In this paper a new smelting process using fine iron ore powder and coal is proposed. The pecu-liarity is to eliminate the pollution in process improvement. In order to solve the sticking problem in conventional fluidized bed reactor, here we proposed a new technic by using non - isothermal fluidized moving bed prereduction reactor. Further, we are using the maximum utilization of energy principle instead of the second combustion principle. Three measures in our proposed process are： using fine iron ore as input; using the waste gas as chemical synthesis; using the reduction mechanism of lower part of blast furnace. With the progress of globalization of economy and technics, we proposed to try the possibility of using the venture capital to help the reformation of iron industry in china.