Uncertainty over Qld Nickel clean-up

The Queensland government won't say whether taxpayers will foot the bill to rehabilitate the Queensland Nickel site if the firm collapses.

Shadow Environment Minister Stephen Bennett has raised concerns the state would have to pay the clean-up bill to remediate Clive Palmer's Yabulu refinery site if the firm was unable to trade its way out of voluntary administration.

"The problem for Queensland taxpayers is the potential clean-up costs at the site and in particular the sludge ponds which contain a toxic mix of chemicals and heavy metals," he said.

He claims the cost would be more than $300 million, while other reports estimate the bill would be somewhere between $25-100 million.

The Department of Environment and Heritage Protection (EHP) said an environment bond was not held for the refinery because it didn't apply to "businesses of this type".

"Queensland Nickel's Environmental Authority imposes strict conditions on the refinery's operations that ensure the safety of the surrounding environment, including the Great Barrier Reef," a spokesman said.

The company's responsibilities hadn't been changed by the fact administrators had been appointed, he said.

There were also specific requirements that the firm must rehabilitate tailing dams and ensure the area was "safe to humans and wildlife".

However, the department wouldn't say whether taxpayers would have to pay to rehabilitate the site if Queensland Nickel or any future owner didn't have the funds to do so.

"EHP will not pre-empt the work of the administrator by commenting on the future operations of the refinery," the department said.

Queensland Resources Council chief executive Michael Roche said refineries operated under different rules when asked if they should be required to pay a bond like mining firms.

"But I think we're getting a bit ahead of ourselves, aren't we?" he said.

"There are many businesses that go into administration and successfully come out the other side, perhaps with a new owner."