You're not going to melt micarta, phenolic is a thermoset. Once polymerized it can not be made to melt any more than a piece of wood can melt. It can burn or char, when it does it releases formaldehyde. In small doses it will make you not feel well and give you a sore throat. If you actually breath in real smoke it is pretty bad for you. I suggest keeping it cool by keeping it wet and it wont give you any trouble unless you work with it a lot.
I love the stuff and use it for a lot of stuff. Stiff, dimensionally stable, high temperature, similar coefficient of thermal expansion as aluminum (about .000013 in/in per deg F, about 1/10th the amount of most polymers) and inexpensive. Truly an excellent material. I even occasionally use it for knife scales.
Coarse tooth saw works well, about 6-12 TPI. You can shape it with a wood rasp. If you grind it, take care not to over heat it or you'll get into those toxicity issues.