A process for the formation of pellets containing an ultra hard (superhard) core coated with an encapsulating material includes utilizing a shovel rotor in combination with a rotating pan and/or a fluidized bed apparatus in sequence. The process includes providing a source of superhard material, providing a mixture comprising a binder, a solvent or fluid medium and the intended coating or encapsulating layer, and combining the superhard material and the mixture in a shovel rotor. The rotor of the shovel rotor is rotated at a velocity such that the superhard material is encapsulated by the mixture to form pellets. The pellets are introduced into a rotating vessel or fluidized bed granulating apparatus, and the pellets are contacted with encapsulating material to form pellets of greater mass than the pellets introduced into the vessel.