The company has removed all its machinery and ordered its workforce to leave the mine. This halt in production is for the fourth time in four and a half months.
The move comes after Carna terminated its contract with Lanco Infratech, reported ABC.
Construction Forestry Mining and Energy Union secretary Gary Wood was quoted by the news agency as saying: "I think both the company Lanco and Carna have to position themselves to accept in one way, shape or form their responsibilities for the mining of coal."
The mine supplies coal to Bluewaters power station, which caters to the South West grid and retailer Synergy. Bluewater Power Station said it expects to find a solution to the issue soon.
Wood said Bluewater is "no doubt involved in discussions with either Lanco and or Carna about their ongoing coal supplies.
"They have the step-in rights but it’s only for their coal supply, which would still leave a void where there is no supply for other employees so … from our point of view it could mean there could be [job] losses."