A process and system is provided for briquetting particulate matter such as moisture-containing bituminous and sub-bituminous coal. This process includes partially drying the particulate matter and feeding, the partially dried particulate matter to a briquetting apparatus under conditions such that water vapour is released from the particulate matter during feeding. The particulate matter is passed through briquette forming rollers to form briquettes. The released water vapour substantially displaces or prevents the ingress of a large proportion of other gaseous components from the atmosphere surrounding an/or intermixed with the particulate matter. The particulate matter that is fed to the briquetting apparatus is surrounded by and intermixed with a gaseous component containing 70 to 100% by volume of water vapour at the point where it enters the briquette-forming part of the briquetting apparatus, such that when the particulate matter is compressed during briquette formation, the water vapour liquefies and the pressure buildup of gaseous material in the thus-formed briquettes is minimised. This reduction in the pressure buildup of gaseous components also acts to reduce blow-back of gases as the coal fines are being formed into briquettes.