This review focuses on ligninolytic fungi, soil bacteria, plants and root exudates in the degradation and solubilisation of low grade and waste coal and the interaction between these mutualistic biocatalysts. Coal represents a considerable portion of the total global fossil fuel reserve and continued demand for, and supply of this resource generates vast quantities of spoil and low grade waste. Large scale bioremediation technologies for the beneficiation of waste coal have unfortunately not yet been realised despite the many discoveries of microorganisms capable of lignite, lignin, and humic acid breakdown. Even so, solubilisation and depolymerization of low grade coal appears to involve either ligninolytic enzyme action or the production of alkaline substances or both. While the precise mechanism of coal biosolubilisation is unclear, a model for the phyto-biodegradation of low rank coal by mutualistic interaction between ligninolytic microorganisms and higher plants is proposed. Based on accumulated evidence this model suggests that solubilisation and degradation of lignite and waste coals commences upon plant root exudate and ligninolytic microorganism interaction, which is mutualistic, and includes soil bacteria and both mycorrhizal and non-mycorrhizal fungi. It is envisaged that this model and its further elaboration will aid in the development of functional technologies for commercial bioremediation of coal mine spoils, contribute to soil formation, and the overall biogeochemistry of organic carbon in the global ecosystem.