The fate of around 800 Queensland workers hinges on an expected decision from Clive Palmer about his Yabulu nickel refinery near Townsville.

The future of the refinery and its 776 workers has been thrown into doubt after Palmer lost a court bid to get US$48 million from his former backers.

Palmer wanted his estranged Sino Iron business partner CITIC to give up US$48 million in ‘unpaid royalties’ from the West Australian Sino Iron ore project.

It was one of the bigger moves in the years-long back-and-forth between Palmer and CITIC.

Palmer says he needs the outstanding royalties to keep his Townsville Yabulu nickel refinery running, and without them the business may enter administration.

Palmer has told reporters that his business would suffer “irreparable harm” without the extra funds.

But the presiding judge, Justice Paul Tottle, said the court would accept the risk of damage to his business, and dismissed Palmer’s request.

He why a bank loan did not appear to have been sought, because “the avenues of finance that the bank was prepared to consider do not appear to have been pursued”.

CITIC accused Palmer of having more money than he would admit, insisting he could keep the nickel refinery going on his own.

CITIC’s lawyer said it defied belief that Yabulu would go under without the new money Palmer was demanding.

Unions say workers are the ones at risk in the legal battle amongst wealthy interests.

“We've all heard the rumours, the town's alive with them,” AWU spokesperson Cowboy Stockham told ABC Radio.

“I just want to hear from the horse's mouth what's going on and, you know, just where to from here.”

CITIC said it sympathised with the workers too, despite refusing to pay the royalties.

“Our commercial relationship is with Mineralogy alone,” a CITIC spokesperson told News Corp.

“How Mr Palmer chooses to spend this money and how he chooses to manage his other ventures — whether it be golf courses, nickel mines, soccer teams, the Titanic 2 or robotic dinosaurs — is a matter for him.”