The future of Clive Palmer's north Queensland nickel refinery rests in the hands of the state government, his company says.

Queensland Nickel's Yabulu refinery could go into administration as early as Tuesday after Mr Palmer's private company, Mineralogy, lost its bid to force millions of dollars in "outstanding royalty payments" out of its estranged Chinese joint venture partner.

Clive Palmer's Mineralogy has lost a bid to force millions of dollars in "outstanding royalty payments" from an estranged Chinese partner. Credit:Daniel Munoz

A letter to Queensland Nickel's 700-odd employees started circulating on Tuesday morning calling on all staff to pull together to save the site.

"Its future rests in the hands of the Queensland Government," it reads.