The waste coal water slurry from coal washeries contains a significant amount of energy values in terms of both fine and ultrafine coals. These slurries, when disposed off without proper treatment, pose a threat to the environment. Oil agglomeration can be a promising technique to recover these fine coals. In the present study, waste transformer oil from the power generation-transmission sector was used to recover these coal fines. The effect of pulp density, agglomeration time, oil dosage, and particle size was investigated for the performance of the process. The performance of the process was evaluated based on % ash rejection and % organic matter recovery.