You can use the Mechanical Squeezer to turn Charcoal into pulverized Coal.
It is therefore very easy to craft diamonds from it. Is that how it should be?
However, I have not tested it in the latest version.

Modpackversion: v.5.8

IMO diamonds are not hard to get in modded and the steps and machines required to get diamonds doesn't seem that different from using miners.

Intended behaviour with currently no plans to change this.

Thanks for the heads up.