The Victorian government is being sued over its decision to end the logging of native forests. Photo: Adrian Black/AAP PHOTOS

The owner of Australia's last white paper mill is suing a state government over an alleged contract breach that permanently shut down production.

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Opal, the operator of the Maryvale Mill in Victoria's La Trobe Valley, launched a lawsuit in the Supreme Court on Monday seeking $402 million in damages from the Victorian government.

Its statement of claim accuses the state government of breaching an agreement, entered into with the mill's former owner Amcor Limit

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