The invention discloses a process for making iron by virtue of a COREX furnace. The COREX furnace comprises a reduction vertical furnace, a fusion gasifying furnace and a washing tower, wherein the fusion gasifying furnace comprises a plurality of air holes and a plurality of oxygen burners, and oxygen is introduced into the fusion gasifying furnace at least through the air holes and the oxygen burners. The process comprises the following steps: (1) burning lump coals by virtue of oxygen introduced into the fusion gasifying furnace, so as to produce high-temperature coal gas; (2) collecting crushed coals obtained by sieving the lump coal, grinding and milling the crushed coals into powdered coal, and burning the powdered coal in a vault region of the fusion gasifying furnace, so as to produce high-temperature coal gas; (3) transmitting high-temperature coal gas to the reduction vertical furnace, so as to reduce iron-containing raw materials loaded into the reduction vertical furnace to be sponge iron; and (4) inputting sponge iron into the fusion gasifying furnace, and restoring sponge iron to be molten iron in the fusion gasifying furnace. By virtue of the process for making iron by virtue of the COREX furnace, the partial lump coals are replaced by virtue of powdered coal, so that the cost is saved.