Karelsky Okatysh is an open pit low grade (24% Fe) magnetite mine located in the Republic of Karelia, Russia, 30 k east of the border with Finland. It is 100% owned by Severstal. The mine is Russia's fourth-largest iron ore producer and largest pellets producer with annual pellet production of more than 11 million tonnes. Enhancements to the pelletising facilities has enabled Karelsky Okatysh to lift the Fe grade of about 30% of its pellets from 63.2% to 66%. Nearly all of the 66% Fe pellets are sold to Severstal's Cherepevots steel mill and the increased pellet grade has improved the efficiency and lowered the cost of hot metal production at this mill. The plants dry and wet magnetic seperation units have recently upgraded to increase the volume of ore processed and reduce energy consumption which should have a positive effect on costs.