Steel mills and iron furnaces cannot accept magnetite or concentrates. The first is refractory and need too much energy to melt, and the second is too fine, it gest blown out of the furnace. Magnetite concentrates are pelletised to give it bulk to avoid the last problem. The peletising processes involved baking at high temperatures which results in conversion of magnetite to hematite. The process is exothermic which is where the energy saving comes in.
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