Hematite reduction using hydrogen was conducted and the various process parameters were closely observed. A lab scale fluidized bed unit was designed especially for this study. The optimal values of the gas velocity, reduction time and temperature were evaluated. The values which indicated the highest reduction rate were set as fixed parameters for the following tests starting with the reduction time of 30 minutes and 750 ℃ of temperature. Among these variables the one with the highest interest was the gas specific consumption. It will tell the amount of the gas which is required to achieve a reduction rate of over 90% at the optimal conditions. This parameter is important for the scale up of the lab scale unit. 1,500 Nm3/ton-ore was found to be the optimal specific gas consumption rate at which the reduction rates exhibit the highest values for hematite.