Palmer companies take up court battle

Two companies owned by beleaguered mining magnate Clive Palmer have taken over a multi-million dollar court case launched by Queensland Nickel.

Queensland Nickel launched the legal claim against Sino Iron last year, claiming the alleged non-payment of royalties to another Palmer entity, Mineralogy, in turn hindered plans for upgrades at its troubled Townsville refinery.

But lawyers for Sino Iron, which is subsidiary of Mr Palmer's estranged Chinese partner Citic, have argued the bid should be struck out because it doesn't owe any royalties to the company and was an unrelated party.

Uncertainty surrounded the legal battle after Queensland Nickel went into voluntary administration in January. The refinery is now being managed by a new Palmer-owned entity, Queensland Nickel Sales.

On Wednesday, two other companies ultimately owned by Mr Palmer were permitted to assume the action.

The companies - QNI Metals Pty Ltd and QNI Resources Pty Ltd - own the refinery and are not under administration.

The court is being asked to consider if the issue of the disputed royalties has had a negative flow-on impact for the Townsville site.

Justice David Jackson expressed disappointment at the speed with which the matter was proceeding and gave counsel for the two companies two days to file submissions.

Queensland Nickel was placed into voluntary administration and 237 workers sacked in January. The refinery's remaining 550 workers lost their jobs on Friday.

Mr Palmer has outlined five requirements for operations at the refinery to recommence from July.