Mine operator Carna Civil Mining started cutting back work on July 17 as it accused Griffin’s Indian owner Lanco Infratech of not paying for its services for the month of May by the deadline of July 1.

Construction Forestry Mining and Energy Union district secretary Gary Wood told the ABC that a skeleton crew taken from the 260-strong workforce remained on site, and that Carna was paying the workers.

Wood said these costs would “obviously go on to the Lanco Infratech bill” as it was part of the contractual arrangement between Lanco and Carna.

“But how long that’s sustainable and how long Carna can carry that forward is unknown."

The mine feeds the Bluewaters Power Station in Collie which could reportedly run out of thermal coal stockpiles in days.

While the coal-fired power station accounts for 10% of WA’s electricity supply, there are fears that it could end up affecting a greater percentage due “to seasonal peaks and troughs in demand”

WA Energy Minister and Treasurer Mike Nahan reportedly said it is a commercial matter for Griffin Coal and its contractors to resolve.

“While the State Government is not a party to this matter, it continues to closely monitor the situation,” he reportedly said.

Lanco acquired the Griffin Coal assets in 2011. Last month it finally received state government approval to develop a $A500 million export facility at Bunbury which could allow it to ramp up production to 15 million tonnes per annum.