Pumpable aqueous slurries of low rank coal e.g. subbituminous coal and lignite having a comparatively high solids content are made by keeping the particles of coal in contact with a non-oxidizing gas e.g. nitrogen and/or CO.sub.2 thereby maintaining a hydrophobic surface on the particles of coal while they are ground and dried, contacted with an aqueous slurry of liquid hydrocarbonaceous fuel which is absorbed and which coats the particles of coal, and then dried. The dried coated particles of low rank coal are mixed with water to produce a pumpable slurry having a solids content in the range of about 50 to 60 wt. %. In one embodiment, at least a portion of the water needed to produce said pumpable slurry is derived by cooling and condensing out water from the non-oxidizing gas that was used to dry the low rank coal. In still another embodiment, the dewatered non-oxidizing gas is introduced into the combustor of a gas turbine to moderate the temperature and thereby reduce the formation of NO.sub.x gases.