The Federal Government says an application to pump waste water from a north Queensland nickel refinery into the Great Barrier Reef is not being taken lightly.

Mining magnate Clive Palmer is seeking approval from the Great Barrier Reef Marine Park Authority to take contaminated water held in tailing tanks at his nickel refinery plant near Townsville, and release it into nearby Halifax Bay.

The waste water would only be released if levels in tailing tanks reached crisis levels.

Federal Environment Minister Tony Burke says Mr Palmer is effectively applying for “permission to pollute” the Great Barrier Reef.

He says the level of nutrients in the water tanks is significantly below the standard required for the marine park.

“Nitrogen levels, when they get too high, can in the extreme levels cause fish kills and take away all the oxygen that’s needed for marine life,” he said.

The Marine Park Authority does have scope to allow the nutrient-rich water into the reef under strict guidelines, if it can be proved the waste water being held is at crisis levels.

Mr Burke says that should only happen as a last resort.

“There’s specific equipment that can be used in trying to get the water to a better standard,” he said.

“There’s issues of raising dam walls but there’s questions whether that can be done in time.

“And then as I said there’s options if the water were to be released whether it could be done at very, very slow pace, but none of it’s easy.”

He says it is up to the Marine Park Authority to decide if it is possible to do so and not compromise the reef.

“Is there such a thing where it could be done more slowly at lower volumes and not have a negative impact on the marine park?” he said.

“Those sorts of questions are being considered. But if it was all to go out to the marine park in a short amount of time, the potential impact of this could be extraordinary.”

Libby Connors from the Queensland Greens says the release of nickel tailings would have a detrimental effect on the reef.

“It’s pretty insulting for him to claim that there is the jobs of 1,000 of his employees at risk because what the people of Queensland have to weigh up is the damage to the reef – which employees 60,000 people through tourism and related industries – versus Mr Palmer’s nickel refinery,” she said.

The refinery, Queensland Nickel, has declined to comment.