Plasma torch-reactor system is the main unit of the recently developed "PLASMALAB" advanced plasma furnace and technology for reduction processing. Our basic reactor concept is FFP-Falling Film Plasma. The development of the "FFP-reactor" concept covers the manner of introduction of raw materials and the organisation of the plasma arc. Plasma torch - reactor system is a combination between a hollow cathode and a copper water-cooled nozzle (plasma torch) situated coaxially over a vertical water-cooled cylindrical reactor - anode. The adopted type of charge introduction (through the hollow cathode) ensures maximum convection and radiation heat exchange with the plasma arc. The anode spot is in a continuous motion with regulated velocity and trajectory. The operation of the plasma arc is realised with the help of simultaneously working electric, electromagnetic and gas dynamic devices which are computer controlled and synchronised.