A system for processing coal to produce methanol, alcohol-slurry coal for transport, electric power and urea. Raw coal is graded. The downgraded fraction is gasified, producing steam and synthesis gas. The synthesis gas is converted to methanol which is then used to slurry upgraded coal for transport or to produce electric power. The steam output of the gasifier drives an oxygen generator to produce oxygen for the gasifier, when the synthesis gas is used to produce methanol, and also drives an electric power turbine. Natural gas may be used to maximize methanol production. Urea is a by-product.