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PROBLEM TO BE SOLVED : To provide a method for continuously carrying out, efficiently with safety, drying treatment for enabling drying treatment using a rotary kiln in recycling metal sludge without causing explosion such as steam explosion and adhesion to the inside of a retort. SOLUTION : Metal sludge, particularly metal sludge containing rare-earth magnet alloy, is dried in a drying furnace before treatment in a rotary kiln to reduce water content to ≤30%. By this method, the drying of the metal sludge containing large amounts of water can be performed by continuous treatment in two stages using the drying furnace and the rotary kiln, and hereby the metal sludge can be dried to ≤10% water content with extremely high efficiency. COPYRIGHT : (C)2007, JPO&INPIT