Kagara says it’s suspended mining at the Baal Gammon site in Queensland while it continues work on restructuring and refinancing its business.
In a statement the company said it was still fulfilling contracts with stockpiled ore while it struggles to find finance.
"Kagara continues to maintain contract with its suppliers and is appreciative of their support during this period," it said.
Last month the company announced plans to cut 130 workers from its permanent workforce in Perth and north QLD in order to stay profitable.
The news followed the company posting a net loss of $48.9 million for the half-year, which it blamed on falling commodity prices and a rising Australian dollar.
The cash strapped miner said previously it would be "substantially scaling back" exploration spending and focusing on zinc and copper production.