Coal processed outside top university in resort (8)
I believe the answer is:
acapulco
'resort' is the definition.
(Mexican resort)
'coal processed outside top university' is the wordplay.
'processed' indicates an anagram.
'outside' means one lot of letters goes inside another.
'top' becomes 'cap' (both can mean to beat or outdo).
'university' becomes 'u' (abbreviation for university).
'coal' is an anagram of 'alco'.
'cap'+'u'='capu'
'alco' going around 'capu' is 'ACAPULCO'.
'in' is the link.
(Other definitions for acapulco that I've seen before include "Mexico port, resort" , "Mexican location" , "Mexican Pacific port" , "Fashionable port city of southern Mexico" , "Fashionable resort city in southern Mexico" .)