Above 5 degrees C, ferric sulfide disproportionates into mixtures of pyrite (PY), pyrrhotite (PH), and elemental S, with the relative amounts depending upon disproportionation temperature and time. The PH/PY mixtures are used as catalysts for coal liquefaction, with the optimum mixture corresponding to disproportionation at 200 degrees C for 1 h. Reactions of Fe during disproportionation and liquefaction are postulated and confirmed by AA, AES, and XRD. The iron loading has a nonlinear effect on conversion and yield.