Under the agreement, Griffin will reportedly supply 1.8 million tonnes of coal over 25 years to the Bluewaters Power Station in Collie.
Over the course of the contract, the Perth-based subsidiary of Indian giant Lanco Infratech will receive $150 million in addition to the upfront payment, according to the Press Trust of India.
The initial payment is expected to help Griffin meet its financial requirements for the next seven to eight months.
Griffin employs about 470 workers and operates the Ewington and Muja mines 220km southeast of Perth.
Bluewaters generates about 10% of WA’s electricity.
Almost all of WA’s coal is mined in the Permian-age Collie Basin, which contains some 1.3 billion tonnes of sub-bituminous coal
