In the present investigation, aluminum metal-matrix composite (AMC) is developed using a novel in-situ ceramic composite, converted from waste colliery shale (CS) material by heat treating in a plasma reactor under neutral atmosphere. The developed AMC has shown improved mechanical properties as compared to Al-Al2O3 and Al-Al2O3-SiC composites. The present study encompasses the machinability of the developed AMC as well as the other two composites. The variables like radial force, feed force, cutting force, power consumption, and surface roughness are taken as index for machinability. The developed AMC has shown better machinability than the other two composites. The presence of free carbon as graphite in the developed AMC has helped to improve the machinabilty. The machinability results have been corroborated by surface roughness measurement on the machined surfaces of the sample