Energy Minister Michael O'Brien said the government would be seeking expressions of interest for new allocations of brown coal.

The plan could potentially generate thousands of jobs and millions in royalties.

“Victoria has one of the world’s largest deposits of brown coal, and the Coalition government is committed to ensuing this resource is developed for the benefit of the Victorian community,” O’Brien said.

“The allocations will be based on a competitive tender process with the goal of delivering real benefits to the Latrobe Valley region and Victoria.”

According to News, Victoria has an estimated 430 billion tonnes of brown coal.

Approximately 33Bt of this total figure could be extracted from Victoria’s Latrobe Valley.

The announcement counteracts plans by the federal government to reduce the country’s greenhouse gas emissions, but O'Brien said Victoria was now ready to capitalise on its brown coal deposits.

“The Victorian government believes that brown coal can, and should play a key role in our energy future, [and] the allocation process will deliver this,” he said.

“Encouraging new investors and the right technologies could deliver a new generation of industry in the Latrobe Valley, boosting the local economy and creating new jobs.”

Reports circulated that the coalition claimed it had already received interest from China, India and Japan in the coal for activities of low-emission nature.

Victoria’s plans have come under fire from the Australian Greens, with Greens MP for Melbourne Adam Bandt reportedly labelling Premier Ted Baillieu an “environmental vandal”

“I will be seeking advice as to what can be done federally to stop this environmental madness.” the AFR quoted Bandt as saying.

The Government will make a formal announcement on the allocation process in the near future.