Brown coal and lignite are abundant fossil resources,but they have several disadvantages such as low calorific value and high water content.: Considering that the coals consist of small aromatic ring structures with-many functional groups, utilization methods reflecting the structure should be explored. From this viewpoint we l;ave presented; a new method to produce chemicals: from brown coal and lignite under mild conditions. That is the oxidation using 30%-H2O2 aqueous solution at 60 degreesC under atmospheric pressure. When an Australian brown coal (Morwell)was oxidized for 24 h at 60 degreesC, the yield of water-soluble organics was as large as 0.60 kg/kg-coal, 0.28 kg/kg-coal of which; were chemicals such as oxalic acid and acetic acid, On the basis of the examination of the structure of the water-soluble organics, we also presented two methods for upgrading the water-soluble organics. One is the Fenton oxidation of the water-soluble organics by which the yield of Small-molecule components reached more than 0.50 kg/kg-coal: The other is the decomposition of the water-soluble organics in a sub-critical water by which 0.12 kg/kg-coal of benzene or 0.236 kg/kg-coal of methanol was produced, depending on the conditions employed;for preparing the water-soluble organics. Thus:it was clarified that the proposed methods' are effective to produce chemicals from brown coals with low energy supply.