Griffin Coal is intensifying its operations as it faces a critical juncture in its efforts to avoid insolvency. Sean Holmes, the receiver and manager of Griffin Coal, reported that the mine is benefiting from rising prices and new customers. He expressed optimism about the mine's future, stating, "It's a more stable, robust operation that's actually delivering more coal to other customers as well as more coal to Bluewaters [power station] than it probably has in a decade."

Despite this positive outlook, Griffin Coal is under pressure due to an impending deadline for over $300 million in state government subsidies that have supported the business since 2023. The company is also grappling with a protracted dispute regarding the contracted price with its largest customer, Bluewaters Power, a 440-megawatt coal-fired generator located in Collie, about 180 kilometers south of Perth.

Griffin Coal entered receivership in 2022, burdened with debts of approximately $1.5 billion. Employees in Collie, including Chad Mitchell, a third-generation coal miner with 34 years at Griffin, are anxious about the company's future. "Christmas is around the corner, and we were told we'd have a really good idea of where we were headed three to four months ago, and, unfortunately, there's just so many questions unanswered," Mitchell said. He added, "I'm really hoping there is a future here for 10-15 years."

The contracts with Bluewaters Power are central to Griffin's financial challenges, with the company asserting that the current prices are unsustainable. Holmes indicated that negotiations are ongoing, stating, "We're working as fast as we can with commercial customers about possible solutions. But [there's] not a lot that can be discussed at the moment."

The state government has made it clear that it will not provide additional taxpayer funding beyond June 2026. A government spokesperson stated, "The government’s position is that Griffin’s future beyond that date is a matter for the relevant commercial parties. If the relevant commercial parties can adequately arrange to support the mine’s operation before that date, the government will facilitate an appropriate outcome."

The negotiations between Griffin and Bluewaters are crucial for Western Australia's energy security. The Australian Energy Market Operator (AEMO) has provisionally approved Bluewaters to remain operational until at least 2027-28, indicating that the grid will rely on Bluewaters Power for at least three more years. Holmes noted that this decision reinforces Griffin's role in the state's energy supply, saying, "That gives us confidence that the regulator sees that Bluewaters is required to operate and therefore Griffin is the logical supplier of coal to that business."

Griffin Coal has also secured new supply agreements with rare earth miners Iluka and Tronox, which require coal for their mineral processing operations. Holmes remarked, "What is clear to us is businesses like Tronox and Iluka have a demand for coal for the next 10, 20-plus years."

Approximately 400 employees work at Griffin's Collie operations. Mitchell highlighted the impact of uncertainty on younger staff members, stating, "The young guys buying houses, starting families are very nervous and very sensitive. I hope there's a future for them." While Holmes remains hopeful about the company's prospects, he acknowledged the uncertainty facing workers. "They know 30 June 2026 is right around the corner and we're in a difficult space where we haven't got a commercial arrangement with customers and we haven't got a definite position from the state about what it wants to do," he said. "I think most fundamentally, workers need to know what's occurring otherwise they'll look for other roles."