This article studies the complex mass and energy interactions between the reformer and the reduction furnace in an iron plant based on Midrex technology. The methodology consists in the development of rigorous first principle models for the reformer and the reduction furnace, in addition to models for auxiliary units such as heat recuperator, scrubber and compressor. In this regard, a one-dimensional heterogeneous model for the catalyst tubes which takes into account the intraparticle mass transfer resistance was developed for the reformer unit, while the furnace was modelled with bottom-firing configuration. As for the reduction furnace, the mathematical model was based on the concept of shrinking core model. The furnace was modelled as a moving bed reactor taking into consideration the effects of water gas shift reaction, steam reforming of methane and carburisation reactions. The model was first validated using data from a local iron/steel plant and was then simulated to determine key output variables such as bustle gas temperature, degree of metalisation, carbon content, ratio of hydrogen to carbon monoxide, reductants to oxidants ratio and required compression energy. The effects of key input parameters on the performance of the plant were studied. These parameters included recycle ratio, scrubber exit temperature, injected oxygen flow rate, flow rate of natural gas after reformer, to transition zone, to reformer and to cooling zone. Useful profiles were compiled to illustrate the results of the sensitivity analysis. These results may serve as guidelines for a further optimisation of the plant.