As many as 50 mine workers at Monto, west of Bunbaberg, face an uncertain future after its Canadian owner was ordered to pay $33 million.
Melior Australia Pty Ltd and Goondicum Resources Pty Ltd entered voluntary administration on earlier this month, according to News Corp.
The Goondicum mine at Monto hasn't been meeting expectations.
News Corp reports it was expected to produce 160,000 tonnes of ilmenite each year for nine years.
Melior Resources is believed to not be in a position to honour its 2018 loan agreement.
The lender demanded Melior and its subsidiaries pay USD$22.7m, the amount outstanding under the loan agreement, together with related interest, costs and charges according to News Corp.
The Toronto Stock Exchange heard on September 13 that Melior didn't have sufficient cash resources.
Melior Resources has been given until October 31 to confirm its position.