Abstract: The present invention provides methods and systems for reducing moisture in coal, particularly coal fines and other coal streams comprising small diameter particles, using a granular drying material. The invention also relates to novel coal products and intermediates useful in connection with the process. The method and system reduced moisture by contacting the coal with the granular drying material. The granular drying material is selected to be readily separated from the coal fines using a size separation technique such as a sieve screen. The granular drying material is the regenerated, preferably using a process involving heat exchange and cross-flow air. The granular drying material is preferably capable of regeneration and recycling in a continuous process with minimal attrition.