The Victorian State Government recognises that the extensive brown coal deposits in Victoria are one of the State's key competitive strengths for economic development. The unique properties of the coal, together with the ease of open cut mining, make it suitable for a variety of new applications. Research and development activities are centred around applications which take advantage of the natural attributes and unique properties of the coal. The high reactivity and low ash content of the coal led to its selection for the Japanese brown coal liquefaction pilot plant currently operating in the Latrobe Valley, with support from the Victorian Government and the Coal Corporation of Victoria. Research and development of new brown coal based products together with many other areas of applied and fundamental research are being conducted in Victoria by Government research organisations, tertiary insti- tutions and private industry, with the objective of establishing new indus- trial developments based on Victoria's vast brown coal resource.