Iron(III) oxide, also known as ferric oxide or rust, is a chemical compound with the formula Fe2O3. It consists of iron in the +3 oxidation state and is commonly found in nature as the mineral hematite. This compound is typically a reddish-brown powder and is used in various applications, including pigments, ceramics, and as a catalyst in chemical reactions. Iron(III) oxide is produced through the oxidation of iron in the presence of oxygen and moisture. It is an important material in the production of iron and steel, as it can be reduced to iron through various processes. Additionally, it plays a role in environmental science, as it can affect soil and water quality.