SYDNEY - Disgraced mining magnate, Clive Palmer says he plans to sue the Australian prime minister for 10 million Australian dollars (7.7 million US dollars) for defamation.

The former federal member of parliament claims that after his company Queensland Nickel collapsed at the beginning of 2016, Prime Minister Malcolm Turnbull besmirched his name, along with the Employment Minister Michaelia Cash, who he also plans to sue for 250,000 Australian dollars (191,900 US dollars).

"They've lied to people about Queensland Nickel and my role in it. They've said things designed to damage me, personally, in the public's eyes, which were not true and they did that for political reasons," Clive Palmer told the Australian Associated Press on Tuesday.

Palmer will face court in Brisbane on Wednesday, where liquidators will question the fall of Queensland Nickel, which had a debt value of 300 million Australian dollars (230 million US dollars) and left 800 workers jobless.

There is still a chance Palmer could face criminal charges for the matter.