Systems and methods for processing sludge from a fume scrubbing system that scrubs fumes from a steelmaking converter in a manner that separates/isolates a significant portion of the metallic iron particles in the sludge and prepares these particles for convenient handling. In an exemplary system, the system includes separating equipment that isolates metallic iron particles in the sludge and forming equipment that forms the isolated particles into briquettes that have relatively high mechanical resistance that allow the briquettes to maintain their integrity during handling and storage. The high-metallic-iron-content briquettes can be recycled in the steelmaking process, for example, as charging material for a basic oxygen converter or an electric arc furnace. Water used in the system can be recycled and reused within the system, thereby making the system environmentally friendly.