A method of preparing a fuel composition includes placing coal having a heat content between about 3,000 BTU/lb and about 9,000 BTU/lb and a moisture content between about 20 wt % and about 60 wt % in a vessel. The coal is exposed to heat and a pressure less than atmospheric pressure within the vessel, thereby reducing the coal, such that an average primary particle size of the coal is less than 1 millimeter. A binder is introduced to the vessel, such that the coal combines with the binder to yield a mixture. The mixture is shaped to yield a fuel composition.