A process to recover energy from waste coal fines, developed through laboratory, bench, and pilot plant experiments, was investigated. The process consisted of mechanical cleaning followed by high- temperature oil agglomeration and pelletization. The process can produce a quality product under an economically and environmentally acceptable condition. Waste coal fines with ash less than 35% and high-heat value (hhv) greater than 6,000 British thermal units per pound (btu/lb) were upgraded to a product with less than 15% ash and hhv greater than 11,500 btu/lb. A computer model was developed to optimize the processing costs and to perform economic evalution of specific sites. Ultimately, the model can be utilized to establish a priority listing for a region in assisting the determination of reclamation strategy.