Abstract: A process for producing substantially clean water and consolidated slugs of fuel from coal slurry having less than about 30 percent by volume of ash and other impurities on a dry basis is disclosed which comprises (a) placing a quantity of the coal slurry in an enclosed chamber in which means have been provided for drainage of the water from the slurry, and (b) subjecting the slurry to one-dimensional consolidation by the application of compressive stress, thereby producing (i) substantially clean water and (ii) a consolidated, uniformly-shaped slug of fuel having a water content of less than about 10 percent.