Micronized coal is removed from coal-bearing steam by spraying stabilized petroleum oil into the steam and directing the resultant stream at a separation surface on which a coal-oil slurry is deposited and collected. Apparatus includes conduits which direct the resultant stream downward into a housing and normal to a surface on which the slurry is deposited by impact forces. In additional apparatus disclosed, the resultant stream is directed from a horizontal conduit circumferentially along the interior wall of a horizontally disposed cylindrical chamber at the top of the chamber and the coal-oil slurry deposited on the wall by centrifugal force is collected in a trough situated below a longitudinal slot at the bottom of the chamber. In both types of apparatus, after separation of the slurry the velocity of the steam is reduced to settle out remaining oil droplets and is then discharged to the atmosphere.