My understanding is that these magnetite ores are typically...

My understanding is that these magnetite ores are typically processed into a concentrate via a beneficiation process which not only increases the Fe content to the high 60s or low 70s but a lot of the contaminants are removed as well (eg. P and SiO2) to more acceptable levels. It is after this process that the pelletising occurs.

While the beneficiating is likely to be done here (to minimise freight costs), the pelletising could be done somewhere else where the capital costs and running costs may be lower.