The Coal Chunk is an item used to create the Industrial Diamond.
Note: As of IC version 1.6.3, it will create a Diamond instead.
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For a more detailed process on how to create the Industrial Diamond from scratch, please visit the Industrial Diamond page. (Since you must start with a stack of coal to make enough Coal Chunks to produce a diamond, and a stack of coal has the same EMC value as 1 diamond, you lose EMC and you lose a lot of time using this method to make diamonds. )