In all aspects of the mining, processing, and handling of coal, fine particles are generated that are in many cases wasted. These fines can be agglomerated into strong and durable pellets by use of an organic binder which eliminates the need for grinding at the coal burning power plant. When heated, the water in the binder vaporizes, causing a rapid pressure build-up inside the pellet and degredation of the binder, resulting in the return of the coal to fine sized particles.