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Coal and Graphite
Coal is composed of organic molecules collected from the decomposition of ancient living organisms (e.g., plants, fungi). Although it does not naturally occur as a nearly carbon-pure substance, the chemical composition of coal changes over time under the stress of heat and pressure. These pressures lead to the formation of graphite, a nearly carbon-pure substance.
Graphite and Diamond
Graphite and diamond are strikingly similar in chemical composition, both being composed almost purely of carbon. The difference between the two is in the structure of the carbon bonds: while graphite is composed of stacked hexagonal sheets of carbon, each carbon atom in a diamond is connected to four others nearby. The result is a harder substance with tighter carbon bonds.
Turning Graphite to Diamonds
Graphite, rather than coal, is used to create artificial diamonds. With the application of extreme heat (around 2000 degrees Farenheit) and pressure (many thousand times the atmospheric pressure), the sheets of carbon in graphite will form bonds similar to those in diamond. This is how artificial diamonds are created. Although much more extreme conditions are required when working with less pure substances, the same process could be used to create diamond from almost any carbon-rich substance, including coal. Scientists know that diamonds are created naturally deep below the earth's surface, but they do not yet understand how they are made.