Utilization of local-based waste materials can be a challenge due to the resource’s limitations. This study investigated the utilization of rubber tree bark (RTB) as a reductant for mill scale. RTB was blended with coal into five ratios, namely RTB#1–RTB#5. The blends were heated at 1000 °C under argon for 1 h. The char was mixed with scale to produce a carbon-mill scale composite pellet (CCP) with a 1.5 C/O molar ratio. The reduction of CCP was carried out in a tube furnace at 1550 °C for 30 min under argon flowing at 1 L/min. The reduced Fe droplets separate clearly from the residues. The CCP produced from blends RTB#1–RTB#5 shows better reduction with metal of 35.28–39.82 wt.%. The degree of metallization (DOM) ranges between 75.25–84.51%, which is two times higher than that of coal. RTB#3 shows the optimum condition with the highest DOM. CaO in RTB plays a role in forming an ash layer on the metal surface and reacting with Fe2O3 to form a new phase. Utilization of our local-based biomass, such as RTB as a reductant for mill scale, is possible. The consumption of fossil fuel in the process could be decreased by 30%, thus also the production cost.