The reaction between ferric oxide and iron produces aluminium oxide and iron. It is a thermite reaction and is highly exothermic.
It produces a large amount of heat, which is released to melt oxygen and aluminium. This reaction is used in welding of machineries. It is also used in warfare to make grenades.
The chemical reaction for the above is as follows:
3Fe3O2 + 4Al → 2Al2O3 + 6Fe
