A shift in premium fuel supplies and price relationships in recent years has forced the iron ore pelletizing industry to seek ways to utilize coal as an alternate source of energy either in direct combustion or through conversion to gaseous or liquid fuels. In 1978, a research program to demonstrate the technical feasibility and practicality of using a hot, raw, low-BTU coal gas from bituminous, subbituminous, and lignite coals as a fuel for high-temperature induration of iron ore pellets was initiated by the Bureau of Mines Twin Cities Research Center. Cooperators in the program include the U.S. Department of Energy and 20 U.S. firms with interests in iron ore, coal, gas, and industrial engineering. This report summarizes the performance characteristics of a 30-day, around-the-clock gasification-pelletizing test conducted in October and November 1980 with North Dakota Indianhead lignite. Gasification was conducted in a commercial-size, 6.5-Foot-diameter, Wellman-Galusha single-stage, fixed-bed, atmospheric producer with a rated capacity of about 30 million BTU per hour. Iron oxide pellets made from a commerical hematite concentrate were fired with the low-BTU gas in an 8-Foot-diameter by 35-foot-long pilot plant rotary kiln at a rate of 900 pounds of pellets per hour. Gasifier operations at fuel rates up to 3 tons of lignite per hour and hematite pellet induration with raw lignite gas of 160 btu per standard cubic foot are described.