A waterless method of processing coal to remove impurities therefrom includes drying a batch of coal to remove moisture therefrom, pulverizing the coal into individual coal particles to liberate impurity particles from the coal and without substantially reducing the size of the impurity particles, and separating the impurity particles and pulverized coal particles into respective product streams via air classification. The dryer includes a plurality of rotating paddles, and an air stream forces the coal through the plurality of rotating paddles to pulverize the coal into individual particles and liberate the impurities.