Karelsky Okatysh is an open pit mine located in the Republic of Karelia Russia 30 kilometres east of the border with Finland. It is 100% owned by Severstal who uses more than half of the mine's production in its own steel mills. The mine is Russia's fourth largest iron ore producer and largest pellets producer with annual pellet production of more than 10 million tonnes. Karelsky Okatysh is a low grade magnetite ore deposit with a raw ore grade of 24.0% Fe. The mine has benefited greatly from the depreciation of the rouble which has halved its cash costs.