Abstract: A highly dispersed iron-based ionic liquid or liquid-gel catalyst which may be anion-modified and metals-promoted has high catalytic activity, and is useful for hydrocracking/hydrogenation reactions for carbonaceous feed materials. The catalyst is produced by aqueous precipitation from saturated iron salt solutions such as ferric sulfate and ferric alum, and may be modified during preparation with anionic sulfate (SO.sub.4.sup.2-) and promoted with small percentages of at least one active metal such as cobalt, molybdenum, palladium, platinum, nickel, or tungsten or mixtures thereof. The resulting catalyst may be used in a preferred ionic liquid form or in a liquid-gel form, and either fluidic form can be easily mixed and reacted with carbonaceous feed materials such as coal, heavy petroleum fractions, mixed plastic waste, or mixtures thereof.