What can i do to update this firplace?

The blue color looks dull and drab, and the brass is outdated. I see that you have shutters, how nice! I think that if you were to paint the fireplace white it would fit in better with the room and make the corner more cohesive.

Remove the mesh screen and lay it flat to paint over the brass with heat resistent black. It can be done easily with patience and a narrow brush.

Paint it any color that would blend in with the furniture, and the rug, if you have one.

Here's an idea to add interest and height that could work for your fireplace.

http://www.remodelandolacasa.com/2012/01/adding-visual-interest-and-height-to.html

Add a lighter colour to it. Pick out Under Shelf - Top Front and Side Panels , leaving the body of it the same as is.

http://www.hometalk.com/categories/makeovers/fireplaces-mantels/fireplaces

Not knowing what the rest of the room looks like, it is a little difficult to truly give an answer because that will need to be added to the equation for balance, light, etc. How wide is the room, are you adding more seating on the left of the rug? If so, will you need a larger rug for a cocktail table? What is your design style? Are you country, contemporary, Georgian, Ethan Allen, Early American, more toward an European flare? From the picture it is difficult to tell and have a true feel for the ultimate design of the room. What is your budget? Can you start from scratch or need a simple fix? So many other considerations that all need to be taken into the process. But, my initial thought was possibly painting the walls a darker, softer, and warmer color to balance and pull in the other items in the room. Right now the room seems rather cold and stark compared to the weight of the furniture and rug, not to mention the tile floor. Are you keeping the couch and rug? If so, pull the wall color from them. I can't tell from the picture if there are the same colors in the rug as the couch.

If you hate the style of the fireplace, are you able to remove it, how much do you want to spend? Even taking the center portion off would simplify the look. Or add 3-D decorative columns over the flat "columns" on either side. If you don't like the style but can’t remove it, paint it all the same color to make it blend into the wall rather than be an accent. If you like the architecture of the fireplace, lighten it if you paint the walls darker. Maybe a cream with a hint of the wall color added to blend. If you change it to a lighter color, you can highlight the architectural points of interest on it by slightly darkening the lighter color to be an in between match of the wall and lighter color to pull it together. Do the windows and trim in that same lighter accent color. Adding matching trim around the entire room would make it all coordinate too. I love what Linda Sikut did with her fireplace and think that would be lovely above yours. However, you will need to balance the left side with pictures, furniture, mirrors, large plant/tree, builtin shelving or something to offset the windows on the right. Even a large mirror over the fireplace would be a quick and easy point of interest without all the work. Of course, whenever you add a mirror you need to take into consideration what it is going to reflect. Will it be interesting and add to the ambiance or detract? Is the light on the ceiling by the fireplace directional so you can use it to highlight what you do above the mantel?

If you are decorating around the couch and rug you need to add some more weight to the room. Consider adding draperies to the windows, pictures on the sofa table. Are the shutters staying?

There are a million and one things to take into consideration before moving forward with the fireplace. If you are going to go more contemporary, maybe removing it altogether. Just a few off the cuff thoughts. Good luck, have fun and be adventurous!

Paint it, like all the others are suggesting. Shop around for a nice looking piece of wood to varnish, to replace or recover the existing mantle. To compliment your table that's pictured.

If you want a brick or rock looking hearth, you can get 'flat' stone 'tile' .... easier to show you my idea.

https://www.houzz.com/product/6012044-sliced-pebble-tile-charcoal-black-12x12-contemporary-mosaic-tile

Comes in lots of different colors and stone.