As far as I remember, Tufnol is made using phenol resin as a binder for making a laminate of paper, cloth or glassfibre. Phenolic resin is basically the same as Bakelite. When burning, the smoke of Tufnol is unpleasant and choking.
Other sites say that the tool must be extremely sharp, and that water or WD40 are good lubricants whilst machining.
Bear in mind that Tufnol is a laminate and can split along the laminate, especially the paper based stuff.