Nickel refinery death could be imminent

A union says the Queensland government must do everything in its power to stop Clive Palmer's nickel refinery being wound up by the end of the week.

Queensland Nickel's administrators FTI Consulting are seeking a cash injection to ensure the plant near Townsville can continue to operate.

FTI has asked the government for an emergency $10 million overdraft facility to deal with a cash flow crisis, and warns that without it the plant will close and Queensland Nickel will end up in liquidation, Australian Financial Review reports.

It's not clear if the request is for the Queensland government to stump up the money, or simply go guarantor on a loan.

A spokesman for Queensland Treasurer Curtis Pitt told AAP the state government won't be providing funds to prop up the ailing business.

"The Queensland government has made its position clear on providing direct financial assistance to companies and the precedent that might set," the spokesman said.

Australian Workers Union secretary Ben Swan wants government help to head off the closure of the plant, which would mean the loss of a further 550 jobs.

"There is obviously a pressing need for an injection of capital into the business to enable it to bring the plant completely up to scratch," Mr Swan told AAP.

"That's the first order of priority."

FTI Consulting has previously said Queensland Nickel had enough cash to operate until April 30, but would require a huge cash injection to keep running after that.

The state government rejected a request from Mr Palmer to go guarantor on a $35 million loan before Queensland Nickel went into voluntary administration in January, soon after 237 workers were sacked.

Mr Pitt has written to his federal counterpart Scott Morrison, as well as the ministers for trade and employment.

With the federal government liable for worker entitlements if the company is liquidated, Mr Pitt is optimistic about Commonwealth assistance.

AAP has sought comment from the federal government and Mr Palmer.