Iron is a non-combustible material but when it is bought near flame it produces heat then shouldn't it be combustible because it produces heat as rusting of iron is a slow combustion because it produces heat?

Combustion of the metal produces smoke, heat and light normally. ‚ÄčIron has a very high ignition temperature around 1450 0C, only at that temperature combustion of iron takes place. This temperature is the noncombustible temperature given by the ASTM standard. That is why iron is considered as a non-combustible one.
No relation between combustion and rusting. Rusting is a different property in which iron get corroded and form its oxide Fe2O3.xH2O. 

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Combustion does not mean to produce only heat. It means to produce heat, light and smoke after burned once and iron on heating neither produce light
( generally) nor smoke and one more thing combustion also means burning and iron does not
burn.{all substances on heating produce heat}
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