The bio-coal obtained has 66.54% of fixed carbon, 0.27% of sulfur, 34.33 MJ/kg of higher heating value (values measured on a dry basis), and O/C and H/C ratios of 0.08 and 0.49 respectively, resembling a mineral coal, with suitable characteristics for its use as a fuel and reducing agent in iron ore direct reduction processes to produce sponge iron. Furthermore, the product is friable, hydrophobic and resistant to biodegradation.