The major slime forming minerals in coal seams are generally montmorillonite, illite and kaolinite, and due to the consistant trend to full seam mechanisation in New South Wales and Queensland these minerals remain in the feed to a coal preparation plant. After coming into contact with water their size degradation is very rapid, and therefore they mostly report to the fine coal cleaning section of the plant. Froth flotation, being the most effective method of beneficiating fine coal, is widely practised in these two major coal producing states of Australia. Plant experience and laboratory tests suggest that the presence of these slimes in the flotation circuit depresses the flotation of fine coal. Although the deleterious effects of slimes on the flotation behaviour of minerals is well known, the mode of their adsorption at the mineral surface has been a subject of controversy for some time. In this paper, on the basis of the surface properties of slime forming minerals and coal, a model has been put forward to explain the adsorption of slimes at the coal surface. The degree of slime coating has been examined by scanning electron microscopy. Laboratory tests have revealed that with the appropriate use of polyvalent phosphate electrolytes these slimes can be liberated from the coal surface. Just attrition and desliming are not enough to ensure complete liberation of slimes. Coal, after treatment with these electrolytes and then deslimed, floats readily with a common frother, such as MIBC. Modifications in the conventional flotation circuits have been suggested to ensure an efficient flotation of fine coal.