Griffin defaulted on an interest repayment last month to US bondholders owed $US475 million and also missed a $A5 million payment to the tax authority.
Griffin’s debts total $700 million.
“The company owns an important piece of infrastructure and is a major contributor to the South West economy,” administrator KordaMentha partner Brian McMaster said.
“Selling the business as a going concern or a restructuring are options being evaluated.”
McMaster said it would be business as usual while the business was being assessed.
Griffin operates the Ewington and Muja mines near Collie, 220 kilometres southeast of Perth.
The company produces more than 5 million tonnes of coal per annum and employs about 500 people.