Abstract: According to the invention pulverized brown coal is processed by heating brown coal in two stages. During the first stage brown coal being processed is heated by a gaseous heat carrier to a temperature at which thermal decomposition of the brown coal begins. During the second stage the brown coal being processed is heated by the gaseous heat carrier to a temperature at which an intensive thermal decomposition of the brown coal takes place. The stream of the gaseous heat carrier delivered at the second stage of heating is fed with air oxygen and with low-grade products, such as heavy tars and pyrogenic water which are sprayed into the gaseous heat carrier.