The modern metallurgical industry produces approximately 90% of the volume of all produced steel; for this, integrated technology based on fossil materials such as coal, fluxes, and especially iron ore is used. This industry generates large amounts of waste and by-products at almost all stages of production. Alternative iron and steel production technologies based on iron ore, methane, or pure hydrogen are also not waste-free. To ensure sustainable waste management, efforts are made to seal processes as well as capture and recycle dusty waste. This work presents the results of research on the processing of sludge resulting from the dedusting of the basic oxygen furnace (BOF) process and landfilling in a lagoon. The work discusses the treatment of fine dusty sludge hydrated to 26–60% H2O, to which various amounts of caking agents were added; also discussed are the rheological characteristics of the tested suspension systems, the possibility of forming these systems into larger fractions, and rapid drying using 100–600 W microwaves with a drying time of 1–9 min. The aim was to identify, describe, and characterize the parameters of the agglomeration process and obtain a product that was durable enough to transport and dose into slag baths in order to reduce iron oxides in liquid phases. During the research, completely dried briquettes with an appropriate strength were obtained. The study demonstrates that microwave drying at 300 W for 6 min achieved complete drying with a weight loss of 35%, whereas a higher-power treatment at 750 W for 2 min enhanced compressive strength by up to 95% and reached 15 N/psc, which was comparable with green iron ore pellets. This approach offers a sustainable alternative to traditional methods, but with a reduced drying time.