What is the type of chemical reaction represented by the following chemical equation?
FeO3(s)+2Al(s)=2Fe(l)+Al2O3(s)

Aluminum goes from an oxidation state of 0 (all metals are in 0 oxidation states) to +3. It, therefore, loses electrons (it's oxidized). Iron goes from +3 to 0. It, therefore, gains electrons (it's reduced).

This is an oxidation-reduction (redox) reaction.

This is actually a famous reaction that is used to cut steel or weld steel. It's called the "thermite" reaction.

http://en.wikipedia.org/wiki/Thermite

Note: Ferric oxide (Iron(III) oxide) is Fe_2O_3

This is actually a famous reaction that is used to cut steel or weld steel. It's called the "thermite" reaction.

Note: Ferric oxide (Iron(III) oxide) is Fe_2O_3

I was introduced to the thermite reaction with its use to remove rust from railways... now, thanks to you, I can find other uses! :)

Fe_2O_3 = also more commonly called Rust.