Lanco, an Indian power generator, completed a $750 million deal to acquire thermal coal mines near Collie from the failed Griffin Group earlier this year.

The Griffin mines supply coal to Bluewaters, which generates around 10% of WA’s electricity and was another part of the Griffin Group led by ex coal tycoon Ric Stowe.

An agreement to sell the power station to Japanese utilities Kansai Electric and Sumitomo was struck in April – the last of the big Griffin sales by administrators – but could become unglued as Lanco has suddenly threatened to withhold coal supplies, according to the Australian Financial Review.

Lanco reportedly wants to double the price of the coal it supplies to the power station and has cited “operational difficulties” to justify its price hike.

Griffin administrators are making their way to India to talk to Lanco and attempt to remedy the situation.

Griffin Coal increasingly found an export market in India last year before it was acquired by Lanco.

Griffin Coal employs about 470 workers and operates the Ewington and Muja mines 220 kilometres southeast of Perth.