Highly dispersed ferrihydrite, Si/ferrihydrite, and Al/ferrihydrite catalysts have been synthesized with simple precipitation methods. The average particle sizes of all three catalysts are less than 100 Angstrom. The binary Si/ferrihydrite and Al/ferrihydrite catalysts show no particle agglomeration at temperatures up to 400 degrees C. Results of coal liquefaction tests indicate that the catalysts are as effective as or better than a commercial iron catalyst.