An improved process is provided for hydroconverting of coal in which a hydrocarbon-dispersible chromium compound is mixed with a hydrocarbonaceous material, in the absence of coal, to form a high metals-containing catalyst precursor concentrate which is heated in the presence of a hydrogen sulfide-containing gas to form a solid chromium-containing catalyst. A portion of the concentrate containing the catalyst is introduced into a diluent to which coal is added or in which coal is present. The resulting mixture is subjected to hydroconversion conditions to convert the coal to a hydrocarbonaceous oil product.