At present the source of virgin iron for steel produced in New Zealand is titanomagnetite extracted from titaniferous beachsands. Some of these beachsand deposits contain extractable quantities of ilmenite as well as titanomagnetite and both minerals represent challenging sources of vanadium and titanium products in addition to iron. This study looks at some theoretical aspects of smelting these ores directly with coal rather than with electric power, and takes into consideration the properties of the raw materials, the thermodynamics of possible process routes and the background of the economics involved.