Coal dust is a fine powdered form of coal, which is created by the crushing, grinding, or pulverizing of coal. Because of the brittle nature of coal, coal dust can be created during mining, transportation, or by mechanically handling coal. It is a form of fugitive dust. Coal dust is a fine powdered form of coal, which is created by the crushing, grinding, or pulverizing of coal. Because of the brittle nature of coal, coal dust can be created during mining, transportation, or by mechanically handling coal. It is a form of fugitive dust.