Clive Palmer's Queensland Nickel refinery in Townsville has confirmed it will lay off 237 workers.

Key points: 237 workers made redundant at Yabulu nickel refinery, north of Townsville

237 workers made redundant at Yabulu nickel refinery, north of Townsville 550 employees to remain at the business, AWU says

550 employees to remain at the business, AWU says During the 2014–2015 financial year, Queensland Nickel donated nearly $6 million to the Palmer United Party

During the 2014–2015 financial year, Queensland Nickel donated nearly $6 million to the Palmer United Party Workers say job losses "not unexpected news"

Mr Palmer was in discussions with the Queensland Government for a $35 million bailout to keep the operation at Yabulu afloat but was knocked back late last year.

Police were called to the site on Friday morning and extra security guards were stationed at the gate of the plant.

Managing director Clive Mensink said in a statement it was a "sad state of affairs" that only industry in the south-east corner of Queensland received help from the State Government.

"The Queensland Government has made it clear despite the nickel price being the lowest in 15 years, it has no interest in assisting Queensland Nickel in providing continued employment for over 800 families in Townsville," he said.

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The Australian Workers Union (AWU) said it was disappointed by the decision to shed jobs.

It said it believed about 550 employees would remain with the business.

Just months before Mr Palmer asked the State Government for help, documents showed that some of his businesses, including Queensland Nickel, donated about $9.5 million to his Palmer United Party (PUP).

During the 2014–2015 financial year, Queensland Nickel had enough money to donate $5,947,720 to the PUP.

Acting Premier Jackie Trad said the State Government tried to work with Queensland Nickel but the company would not disclose all details about its financial position.

"Unfortunately the Government's request for access to the full financial statements of Mr Palmer's businesses was not responded to, and we could not, in all good conscience, hand over money to a private company without full financial due diligence," she said.

Townsville Mayor Jenny Hill questioned whether the company should have donated millions of dollars to Clive Palmer's federal election campaign.

"Whether that was prudent or not, considering the falling nickel price is up to QNI [Queensland Nickel] to determine," she said.

She has urged the Palaszczuk Government to consider an assistance package for the industry.

But local federal member Ewen Jones said Clive Palmer should make a show of faith and repay the millions of dollars donated to his election campaign, back to the refinery.

The State Government has set up a taskforce to help workers with their entitlements.

Sacked employee and union delegate Steve Lovell said he would be waiting with anticipation for updates.

"I'll just be waiting for Wednesday I suppose, to see if we can get paid our entitlements," he said.

Fellow sacked employee Rohan O'Farrell said while the decision was disappointing for workers, it was no surprise.

"It's not unexpected news ... the place has been down for 12 months or so. It's just happened to come to a head today," he said.

Mr Mensink said that north Queenslanders had "every right to feel disappointed the State Government had turned its back on them".

"The Premier and all Labor State Members from the Townsville area have repeatedly refused to even meet with me to discuss this matter," he said.

"We now need to concentrate on ensuring the 2,000 additional jobs that Queensland Nickel operations sustain in Townsville can continue."

AWU state secretary Ben Swan it had been "a horrible saga that's been going on for a number of months".

"Palmer needs to stop ripping money out of the business to fund his political fantasies," he said.