Palmer's Qld Nickel to face trial

Clive Palmer's embattled Queensland Nickel has been ordered to stand trial over alleged environmental breaches at its refinery near Townsville.

The company was charged with six offences late last year after toxic sludge allegedly leaked from a storage dam at the Yabalu refinery.

Two charges of wilfully contravening a condition of environmental authority were committed to a higher court after a three-day committal hearing finished on Wednesday.

One of the original charges has been dropped while three others will be mentioned in Townsville Magistrates court in June.

The hearing decision comes amid speculation Queensland Nickel could fall into administration after another Palmer company, Mineralogy, lost a legal bid to have an estranged Chinese business partner pay millions in "outstanding royalty payments".

Queensland Nickel has reportedly asked the state government for a $40 million guarantee for the Yabalu refinery, which employs more than 700 people.

Both major parties have urged Mr Palmer to use his personal wealth to save operations.