The WA Government has exceeded its budget to keep a failing coal mine afloat.

Initially, the government had set aside $19.5 million in December to assist the ailing foreign-owned Griffin Coal mine in the state’s south-west, but by April, $7.3 million had already been spent on winter preparations and repairing equipment.

Premier Roger Cook has revealed in parliament that an additional $15.9 million has been utilised, surpassing the original allocation and bringing the total expenditure to $23.2 million. 

The extra funds were allocated to support mining operations between March and June this year.

However, the opposition warns that this could be the start of a “long and costly exercise” for the government. 

Griffin's state agreement, which grants it mining rights, was scheduled to expire this year but has been extended for another 12 months, with the possibility of a further 12-month extension.

Griffin Coal supplies coal to ASX-listed miner South32's alumina operations in the area and the state's largest energy grid, the South West Interconnected System. 

The mine has been plagued by financial and operational issues for years, leading to its receivership in September with debts of nearly $1.5 billion.

Shadow treasurer Steve Thomas criticised the government's decision, saying that propping up a bankrupt foreign-owned company with taxpayer money is embarrassing. 

The WA government has engaged corporate advisers to assist with negotiations to resolve Griffin's financial difficulties through commercial agreements.

Despite questions about the amount of money provided to Griffin, government minister Stephen Dawson says the funding comes from the difference between coal sales revenue and production costs. 

Dr Thomas believes that the government should have taken action earlier to ensure stability in the state's coal fields.

The future remains uncertain for Griffin Coal, and the government has not disclosed the available funds, citing commercial sensitivity.