The simultaneous grinding/agglormeration process has been used to beneficiate Minto coal. Experiments with the Szego Mill, a planetary ring-roller mill with grooved rollers, have given good results. Different roller ridge/groove sizes have been tested and favourable oil-coal-water ratios established. Ash removal is closely related to grinding performance. Very short mill residence times, of the order of 10 seconds, are sufficient for microagglomerate formation. Considerable equipment and operating cost savings are possible with the modified process.