coal burns on the grates, the pan in the bottom catches the ashes.
I highly recommend reading craig's primer on burning coal. It will be a big help in getting you started.
Secondly, the easiest way to light a coal fire is charcoal. NOT matchlight and NO LIGHTER FLUID.
Build a small wood fire with light kindling, then proceed to add charcoal (briquettes or lump, doesn't matter). As the charcoal starts burning intensly, you may SLOWLY begin adding coal. While you're doing all of this, make sure the underfire draft control is fully open, as it takes a lot of draft to get coal to light. As the coal you're adding catches (yellow flames, crackling, the actual coal glowing red) begin adding more and more.
After you have a good amount of coal burning hot, fill the stove to capacity. That part is important. Then, after all the coal in the stove is burning, set the air control at a reasonable level and enjoy.
At least twice a day, you'll have to shake the ashes off the coal and add fresh coal. The procedures are well described in Craig's write up.