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                      SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                      
                                  FORM 10-Q/A      
                                    
                                AMENDMENT NO.1      
    
(Mark One)
   [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
               For the quarterly period ended September 30, 1996      
                                          
                                      OR      

   [ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
         For the transition period _______________ to _______________
                            
                        Commission File Number: 0-18858      

                             KAISER VENTURES INC.
            (Exact name of registrant as specified in its charter)

 
          DELAWARE                                        94-0594733
---------------------------------                ---------------------------
 (State or other jurisdiction of                       (I.R.S. Employer 
  incorporation or organization)                      Identification No.)
 
          
      3633 E. Inland Empire Blvd., Suite 850, Ontario, California  91764
              (Address of principal executive offices) (Zip code)      
                 
                                 909-483-8500
             (Registrant's telephone number, including area code)      
                 
                                      N/A
             (Former name, former address and former fiscal year,
                         if changed since last report)      

    
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.   Yes  X    No          
                                         ---      ---
                         
                     APPLICABLE ONLY TO CORPORATE ISSUERS:      
    
Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date. On October 31, 1996, the 
Company had 10,516,594 shares of Common Stock, $.03 par value, outstanding 
(including 136,919 shares deemed outstanding and held in reserve by the Company 
for issuance to the former general unsecured creditors of Kaiser Steel 
Corporation pursuant to its Plan of Reorganization).      

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                               EXPLANATORY NOTE

This Amendment No. 1 to the Company's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1996 is being filed for the purpose of correcting
the first two sentences in "Introduction - Business Update - Property
Development." The first paragraph of such section with the amended sentences
should read as follows: "After the contribution of approximately 475 acres of
the Mill Site Property in exchange for its interest in PMI, the Company
currently owns approximately 750 acres of the Mill Site Property. This acreage
will decrease to approximately 700 acres with the conclusion of the anticipated
sale of approximately 54 acres to PMI as discussed below. The Company is
currently undertaking efforts to obtain the entitlements and permits necessary
to develop the balance of the Mill Site Property for a variety of possible
commercial, industrial and recreational uses. These efforts include possible
changes that would alter and improve the access to portions of the Mill Site
Property. In addition to these entitlement and permitting activities, the
Company has also begun preliminary exploratory discussion with a number of
prospective users for the balance of the Mill Site Property. As discussed in
detail in the Company's 1995 Form 10-K Report, the Company is also pursing
several other projects for the redevelopment of the Mill Site Property,
including a rail-served municipal solid waste transfer and recovery facility,
and several industrial and commercial lots adjoining the motorsports complex.
Material developments with respect to these projects are described below."


                                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized. 


                                               Kaiser Ventures, Inc.

                                               
                                               /s/ James F. Verhey
                                               ------------------------
                                               James F. Verhey
                                               Vice President Finance & CFO

Date: November 20, 1996