This article is devoted to basalt reprocessing together with magnetite concentrate in order to obtain ferrous alloy and calcium carbide. The studies have been based on thermodynamic simulation and electric smelting in arc furnace. The thermodynamic simulation has been performed using HSC-5.1 software based on the principle of minimum Gibbs energy. The blend was smelted in arc furnaces. On the basis of the obtained results of combined processing of basalt, it has been established that under equilibrium conditions, the increase in carbon content from 36 to 42 wt % of basalt and concentrate mixture makes it possible to increase the aluminum extraction into the alloy up to 81.4%, calcium into calcium carbideup to 51.4%, and silicon into the alloyup to 78.5%. Increase in the amount of lime to 32% allows to increase the content of calcium carbide to 278 dm 3 /kg. Electric smelting of the blend under laboratory conditions in the presence of 17-32% of lime makes it possible to extract ferrous alloy containing 69.5-72.8% of silicon, 69.1-70.2% of aluminum, and to obtain ferrous alloy containing 49-53% of ∑Si and Al and calcium carbide in the amount of 233-278 dm 3 /kg. During large-scale laboratory smelting of blend comprised of basalt (38.5%), magnetite concentrate (13.4%), lime (15.4%), and coke fines (32.7%), the ferrous alloy has been produced containing 48-53% of ∑Si and Al, calcium carbide in amount of 240-260 dm 3 /kg. Extraction of Si and Al into the alloy was 70.4 and 68.6%, respectively; Ca into carbide -60.3%; Zn and Pb into sublimates -99.6 and 92.8%, respectively.