Wesfarmers Resources managing director Stewart Butel told The Australian newspaper that this decision was made early last week.
However, a Wesfarmers corporate spokesperson did not comment on the report.
Wesfarmers owns the Premier coal mine near Griffin’s operations close to Collie.
Griffin still employs about 470 workers and operates the Ewington and Muja mines 220 kilometres southeast of Perth.
The company lost a contract to supply Verve Energy in March, but has been exporting to India according to a union official.
The total outstanding debt of Griffin exceeds $A1.8 billion and administrator KordaMentha was previously anticipated to sell the company by year-end.
