The chemical process appearing at thermal contact of hematite with carbon monoxide was modeled using TERRA software package. In this case, the molar ratio of CO/Fe 2 O 3 components varied in the range of 1 – 15, and the process temperature – in the range of 25 – 1500 °C. Carbon monoxide at normal temperature decomposes almost completely to form carbon and carbon dioxide (the Bell-Boudoir reaction). When the process temperature increases, this carbon consistently participates in formation of the phases of magnetite, iron and cementite, and carbon dioxide participates in vustite formation and in iron decarburization. The carbon monoxide does not directly participate as a reducing reagent in local chemical reactions of this process.