The Greens and environmental groups say they are alarmed authorities have not acted against Clive Palmer's company Queensland Nickel (QNI) for discharging toxic material into the Great Barrier Reef marine park without permission.

Documents obtained under Freedom of Information (FOI) laws show the company released toxic waste from its tailings dams at the Yabulu nickel refinery, near Townsville, without a permit in 2009 and 2011.

The Great Barrier Reef Marine Park Authority decided at the time not to take legal action against QNI, but reserved its right to take the company to court.

Mr Palmer denies Queensland Nickel breached environmental laws.

The FOI documents were obtained by the North Queensland Conservation Council (NQCC).

NQCC spokeswoman Wendy Tubman says it raises questions about the State Government's role in policing the company.

"There's been a failure on behalf of the Government to actually take action when action should have been taken," she said.

"That's a concern because we know that they've had problems down and up the reef, they've had problems in Gladstone, we know the reef is in poor condition."

Greens senator Larissa Waters also says stronger action is needed.

"That sends a terrible message to anyone who wants to trash the reef, that they do so and they won't get in any trouble," she said.

The Queensland Government has ordered QNI to increase the capacity of its tailing dams by November.

Premier Campbell Newman says progress is being made.

"In the last couple of months, they've finally decided to get on with it," he said.

Environment Minister Andrew Powell says if the company does not comply, "there are significant penalties".

"They have a new environmental approval which reflects the environmental conditions, the environmental management, that we now expect in the 21st century," he said.

"One of those is the tailings dam must be lifted by the end of the next dry season."

Mr Palmer says a solution for the tailings dams was found three years ago.

"It's never been used for anything but political purposes since that time," Mr Palmer said, adding that Mr Newman was using the issue to attack him.