Ash-containing raw coal is converted to a liquid fuel product by contacting the coal with hydrogen and an OHP-enriched solvent containing OHP and THP in a ratio of OHP/THP greater than 0.4, wherein the OHP is present in an amount of at least 5 weight percent of the solvent, to produce a liquid stream and a coal minerals stream, and recycling at least a portion of the coal minerals stream.A portion of the liquid stream (64) is catalytically hydrogenated (68), preferably with a tungsten-containing catalyst, to increase the ratio of OHP/THP to a value greater than 0.4 or preferably greater than l. The OHP-enriched liquid stream solvent is passed as solvent to a mixing zone (11) where it is admixed with raw coal (10) and recycled coal minerals (38), admixed with hydrogen (58) and passed to a preheater (20) and dissolver (24).The use of the OHP-enriched solvent improves coal solvation and liquid distillate production, while the recycle of coal minerals assists in maintaining a high OHP level in the circulated process solvent. By increasing the OHP/THP ratio to a value greater than 1, the amount of hydrogen consumed in the process can be significantly reduced.