Degradation characteristic of weathered coal was tested by using a drop test apparatus to measure the fines generation during transportation and handling of the ship loading facilities at the Gladstone port. The normal coal samples were exposed to the weathering condition for l-rnonth, 3 months, 6 months, 9 months and one year. These weathered coal samples were tested with the drop breakage apparatus and compared with the drop test results of normal unweathered coal. The effect of different types of surface onto which the coal was dropped was determined by dropping onto a steel plate, conveyor belt and coal stockpile. A degradation model was developed with several parameters to measure the total fines generation of coal handling systems of the Gladstone port. The rate of fines generation of coal increases with the period of weathering. The fines generation increases up to 9 months of weathering. Thereafter fines generation is almost a constant value between 9 and 12 months. The fines generation of coal samples were least on the coal surface compared to the other two impact surfaces.