The formation of novel carbon nanostructures containing Fe-Nd-B nanocrystallites is reported. Tests were performed in a DC arc plasma reactor under He atmosphere using (Fe-Nd-B)- filled anodes. The influence of the operational parameters pressure and anode composition on the product morphology was studied. The products were analyzed by HR TEM, MFM and magnetic measurements. Emission spectroscopy was performed to determine the temperature and C2 radical distribution in the arc.