Being able to make torches using only rubber was only possible in older versions, and you can only make charcoal from sawdust that you get from sawmills. Given that you need at least 10 diamonds and some nether ores before any machines are possible, don't worry about trying to make charcoal yet.
The current use for rubber in torch making is that you can use 1 coal and 1 raw rubber with 4 sticks to make 4 torches, basically halving your coal usage to make torches. For finding early coal, look through nearby surface caves. Don't leave any torches behind in those caves, as mobs will simply whack them when night comes. Make sure that you don't put torches down close to the coal you're mining; 4 blocks away is far enough.
