Abstract: Slurries of water-saturated coal and liquid hydrocarbon carriers having the properties of low apparent viscosity, controlled sedimentation and easy separation, which properties render the slurries transportable over long distances in conventional oil pipelines to predetermined destinations where they are easily separated into their constituent parts, are prepared by combining coal with a liquid hydrocarbon carrier, a minor amount of water in excess of the amount in the water-saturated coal and, optionally, a surfactant to form a mixture and then agitating the mixture under high shear conditions to form agglomerated coal particles in which water acts as a coordinator bridging layer around and/or among the agglomerated particles.