After ore dressing and concentration, steel industries require bentonite for the formation of granules from iron ore powder for smooth safe handling for further process. A specially formulated bentonite forms good quality granules or pellets with minimum breakage. Bentonite is added to the iron ore powdered concentrate where it acts as a binder to form good quality of pellets. The quality of bentonite for I.O.P. measured by its capacity to absorb water and its stability at high temperature.