Abstract: Densified coal pellets of improved physical properties and enhanced calorific value are produced by a process which includes subjecting coal to a shearing-attritioning step followed by extrusion and drying steps, characterised by incorporating an additive into the coal that is subject to the said shearing-attritioning step, said additive being chosen from one or more of the group consisting of: alkali metal hydroxides, alkaline earth metal hydroxides, ammonium hydroxide, alkali metal carbonates, alkaline earth carbonates, oxides of base metals, oxides of transition metals, and small molecule carbonyl compounds.