Palmer's war with Queensland government rages on

The strained relationship between Clive Palmer and the Queensland government shows no signs of easing as fresh tensions emerge over the mining magnate's nickel refinery.

The government has been told insolvency experts have been called in to talk with Queensland Nickel directors as the fate of the Yabulu refinery remains uncertain.

Mr Palmer lashed out in a statement on Thursday saying the government's recent refusal to assist Queensland Nickel by guaranteeing a $35 million loan was making it "near impossible" to compete in the international marketplace.

On Thursday night Employment Minister Grace Grace said the government had been advised QN was liaising with insolvency experts, "that they are looking at all available options, and that the company intends to work to trade through this period.

"Any decision to close the business rests entirely with the company's owner, but the Palaszczuk government stands ready to deploy our rapid response team to help affected workers if this unfortunately happens."

The team would help workers secure their entitlements and provide other services, including financial advice, and job searching.