Abstract: A stable lignosulfonate emulsion for use as a binding agent includes an aqueous dispersion of lignosulfonate containing material having an initial solids concentration of between about 45% to about 65% by weight, and about 1 part to about 50 parts, per 100 parts of the lignosulfonate containing material, of a hydrophobe such as wax, oil, fat, asphalt or mixtures thereof. Spray drying the emulsion provides a powder which is less dusty than comparable lignosulfonate products similarly dried, and which upon rewetting provides a stable emulsion. A method of preparing the emulsion is also disclosed.