Environmental campaigner Drew Hutton is pursuing legal action against Clive Palmer, saying the mining magnate cannot go around saying whatever he wants about people just because he is a billionaire.

Last week Mr Palmer accused the environmental campaigner of having links to the CIA in a plot to shut down Australian mining operations.

But in Brisbane yesterday, Mr Palmer suggested his comments were merely a distraction to take some heat off LNP leader Campbell Newman in the run-up to the Queensland state election.

Mr Palmer now says he would not repeat the claims, but that he does not regret making the statement.

"Without you (the media), without Julia Gillard, without the Treasurer, without the Greens raising these things in the Senate, who knows where the attention might have been in the last weeks coming up to the election?" he said.

Mr Hutton says Mr Palmer thinks he is untouchable.

"This is a leading person in our society; this is a man with immense amount of wealth and immense influence and he is carrying on in this way," he said.

"I am not a litigator - I don't like taking people to court and I believe in free speech.

"But I also believe in being a decent human being and not tarnishing them by making up all sorts of wild accusations about them."

Mr Hutton says the mining magnate has admitted to "basically making up" the conspiracy about the CIA.

"I was quite prepared to drop this whole business about him seriously defaming me, [but] I am just appalled, and consequently I have asked my lawyer to draw up a letter of intent to send to Clive."