Waelz slag is an iron-containing waste generated during electric arc furnace (EAF) dust processing in a rotary kiln named the Waelz process. This study focuses on the reduction smelting of the Waelz slag to produce iron-based alloy. The thermodynamic simulation using FactSage 8.0 software was carried out to predict temperatures of the metal and slag obtained as well as their compositions. Based on the simulation results, reduction smelting experiments were performed on a laboratory scale using two approaches, with and without preliminary froth flotation of carbon, respectively. The experiments have confirmed the technological possibility of reduction smelting of the Waelz slag from EAF dust processing. The approach using preliminary flotation of carbon and reduction smelting at 1500 °C resulted in high-copper cast iron production, while the approach without flotation, where the Waelz slag was smelted at 1650 °C with the addition of SiO2 flux, led to obtaining low-silicon ferrosilicon with high Cu content, as well as slag attractive for construction industry.