Collie coal is too cheap: union

Griffin Coal must demand more money for its coal to ensure the security of its employees, according to CMFEU mining and energy division WA secretary Gary Wood.

Mr Wood's comments come after it was revealed last week Griffin Coal was selling its thermal coal for just $42 per tonne - $1 per tonne lower than its average sales price from earlier this year.

The West Australian newspaper also revealed that a report from Griffin Coal's owners, Lanco Infratech, showed the mine had lost $55.3 million in the three months to September 30.

Mr Wood said the company needed to demand more for its thermal coal to protect its employees.

"It is of a deep concern to us that it doesn't look promising for the long term," he said.

"At some stage, something has to give."

Mr Wood said a deal with Worsley Alumina was an option.

"Worsley want a sustainable supply of coal, I am sure they are willing to pay for reliability," he said.

"All Griffin Coal are focusing on is reducing the income of their loyal workers who have been through the challenging times.

"You only have to look at Collie itself and the surrounding area. People are not spending money. They are worried about the economy."