The majority of Kagara's 325 workers look set to lose their jobs after the company's move into voluntary administration.
AAP reports Taylor Woodings administrators say Kagara's base metals mines are unlikely to remain operational because of the money they're losing.
Earlier this year the company sacked 130 workers from its Queensland and Perth workforce to stay profitable.
It also suspended production at the Baal Gammon mine in Queensland, as well as other sites, in order to save money.
Taylor Woodings said the company's decision to move into administration would give it the time to restructure to the benefit of all stakeholders.
Kagara has blamed low zinc and copper prices and the rising Australian dollar for its poor earnings.
It previously said it would be aiming to scale back exploration spending to focus on production.