A method of producing a metal alloy utilizing aluminum smelter waste while simultaneously remediating the waste by converting the metallic and nonmetallic components to a non-hazardous slag. The method includes providing aluminum smelter, obtaining finely divided aluminum and/or spent pot liner from the aluminum smelter, and producing an alloy by oxidizing the finely divided aluminum and/or spent pot liner in the presence of nickelferous iron ore and heat. The non-hazardous slag is also produced during the process as a result of utilization of the nickelferous iron ore.