The current invention relates to a method of manufacturing iron oxide pigments from mill scale. The mill scale is mixed with alien iron oxide and the resultant mixture is heated to a temperature of 200.degree. C. to 900.degree. C. in an oxidizing atmosphere to produce iron oxide pigment which can be black, brown or red. The alien iron oxide used and the iron oxide pigment produced are predominantly Fe.sub.2O.sub.3 or Fe.sub.3O.sub.4 or a mixture of both. The iron oxide pigment produced as above or from any other sources can be turn into black by mixing it with mill scale and the resultant mixture is heated to a temperature of 200.degree. C. to 900.degree. C. in a non-oxidizing or reducing atmosphere to produced iron oxide black pigment. Additives can be added to produce better quality iron oxide black pigment. The additives can be chromium oxide or manganese oxide or magnesium oxide or any carbonaceous material or mixtures thereof. The iron oxide black pigment produced as above is cooled in a non-oxidizing or reducing atmosphere to ensure no re-oxidation.