Coal from the South Blackwater and Ensham collieries is exported from the port of Gladstone in Queensland, Australia to the Jindal COREX ironmaking plant in India. This research was commissioned by the Gladstone Port Authority (GPA) because of the strict particle size requirements for the COREX steel making process. The COREX process cannot tolerate coal particle sizes below 16 mm. The paper describes a series of drop tests onto steel plate conducted during the development of a degradation model for South Blackwater and Ensham coal, to assist in reducing fines production during handling. The cushioning effects of fines reduce overall coal degradation during handling at port handling circuits. Higher percentage fines have significant cushioning effects than lower fined coal samples. The cushioning effects of fines on coal surfaces have minimum effect compared to conveyor and steel surfaces.The degradation model developed was effective at predicting fines generation for coals at drop heights of 5 and 10 m and for multiple drops. The model results indicate that the test sample mass and initial fines content have a significant effect on the test results.