The utilization of white rot fungal strain for degradation of low rank coal from coal environments is considered to be the best choice for converting raw coal into different kinds of valuable by products. NF-1, a fungal strain was isolated from coal mine of Thar region of Pakistan. For enhancing the process of biodegradation, the indigenous fungal isolate was used in the study. The lignite (low rank) coal sample degradation initiated by NF-1 strain were undergone through optimization process and had shown considerable production of organics at 1.5% Glucose, 1% coal loading ratio and 7 days of incubation period. The FTIR analysis of untreated coal and treated coal after solubilization was performed in order to observe changes in structural pattern by NF-1 fungal isolate. NF1 has the ability to break down the aromatic side linkages and attacking the amine and carboxyl groups. Scanning electron microscopy (SEM) of the coal treated by NF-1 strain was analyzed to investigate the attachment and adherence of the fungal mycelium on the coal surface. At 200µm the NF-1 isolate hyphae has clearly entrapped the coal particles showing erosion and up to 50µm colonization and visible changes on the coal surface can be observed clearly. Moreover, the residual coal after fungal pretreatment was processed for extraction of humic acid as a byproduct for defining the effect of such biological pretreatments. The produced humic acid was analyzed on the basis of E4/E6 ratio and FTIR. The fungal pretreated humic acid has shown more improvement in E4/E6 ratio as well as presence of functional groups related to humic acid through FTIR. This explains that the isolate NF1 have ability to speed up the biodegradation process and shows an aptitude of producing valuable by products i.e. humic acid as an alternative fuel.
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