The present invention provides a method for producing direct reduced iron and/or hot metal using high-moisture content carbonaceous material, including: agglomerating carbonaceous material from the high-moisture content carbonaceous material with a metal oxide-bearing material to form an agglomerate suitable for use in a direct reduction and/or hot metal producing process. The method also includes distilling the high-moisture content carbonaceous material. The method further includes dry quenching the carbonaceous material obtained from the distilling step. The method still further includes drying the high-moisture content carbonaceous material with energy from a hot off gas from a furnace for producing direct reduced iron and/or hot metal prior to the distilling step.