The immediate future of Clive Palmer's embattled Townsville refinery has been cast into further doubt after federal Treasurer Scott Morrison ruled out providing direct financial assistance.
FTI Consulting has reportedly asked Queensland Treasurer Curtis Pitt for a $10 million overdraft facility to avoid the nickel plant closing down within days.
Mr Pitt referred the request to Mr Morrison who says, while he's concerned about the viability of the sector, it's the role of companies to make decisions about their competitiveness.
"It's critical that a firm undertakes strategic reviews and seeks external financing opportunities to ensure their ongoing viability," Mr Morrison said in a letter on Thursday.
"The government's position is not to provide companies in difficulty with direct financial assistance, as has been requested."
Queensland Nickel was placed into administration in January, just days after 237 workers were sacked from the refinery.
In his letter, Mr Morrison reminded Mr Pitt the Turnbull government had dedicated $500,000 to helping those workers find jobs.
He also mentioned he was happy to work with the state government on a number of proposed infrastructure projects and the Carmichael Mine.
None of the mentioned projects are in Townsville, where most of the refinery's remaining 550 workers live.
The Queensland government is considering the request and is set to make a decision within days.
A spokesman for Mr Pitt had previously ruled out a direct funding arrangement but the state government has since softened its position.
After its first meeting with creditors in January, FTI Consulting said the company had enough cash flow to last until the end of April.
Mr Pitt was unable to comment on Saturday.
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