A new catalyst with two active constituents interacting with activated carbon was prepared. As a model reaction for coal liquefaction, the hydrocracking of di(1-naphthyl)methane (DNM) was investigated under different reaction conditions over the catalyst. The results show that the catalyst converts DNM hydrocraking into 1-methylnaphthalene and naphthalene with high selectively, without any hydrogenation product. Kinetic analysis indicates that DNM hydrocracking in the temperature range of 170-300 °C could be considered as a first order reaction. The activation energy E and pre-exponential factor A for DNM hydrocracking for different reaction times were calculated.