Coal ash, which also consists of fly ash, is a very fine granular solid residue obtained as a by-product of coal combustion. The invention relates to the surprising result that a fuel can be obtained from coal ash. The process involves a pneumatic separation of the coal ash at relatively low temperatures. The coal ash is separated into at least two size fractions. The size fractions obtained by the process of this invention include at least one with lower carbon and another containing increased levels of carbon in the range of 50% by weight and a heating value in the range of 4000 to 6000 Btu/lb.