As a result of coal cleaning operations, a substantial amount of coal is disposed as waste into the ponds, effecting and endangering the environment. This study includes a technique to recover and utilize the waste coal fines from the preparation plant effluent streams and tailing ponds. Due to the large moisture content of the recovered coal fines, this investigation is focused on the utilization of coal fines in the coal-water slurry fuel. It is our belief that a blend of plant coal and waste coal fines can be used to produce a coal-water slurry fuel with the desired combustion characteristics required by the industry. The coal blend is composed of 85% clean coal and 15% recovered coal fines. The coal-water slurry is prepared at 60% solids with a viscosity less than 500 centipose and 80-90% of solid particles passing through 200 mesh. This paper contains analysis of clean coal, recovered coal fines, and coal-water slurry fuel as well as combustion characteristics.