* Magnate Palmer's financial and political fortunes flag
* Administrators called in to refinery, 300 sacked
* Forbes-listed magnate once one of Australia's richest
* Law school dropout opened dinosaur park, pledged Titanic replica
By Melanie Burton
MELBOURNE Jan 21 (Reuters) - Larger-than-life mining magnate Clive Palmer was riding a boom in mineral prices less than two years ago and had become one of Australia's most influential politicians.
Now, rattled by a slide in commodity prices, the colourful and often controversial tycoon's grip on parts of his business empire is crumbling and his political ambitions have also been dented by defections in the party he created.
Other Australian mining magnates such as Gina Rinehart, one of Asia's richest women, and Andrew "Twiggy" Forest have also seen their fortunes plummet. Palmer's problems came to a head this week when his embattled Queensland Nickel (QNI) refinery called in administrators after sacking more than 200 workers. did not return calls seeking comment but fellow Queensland-based independent lawmaker Bob Katter described him as a "survivor" and said it was too soon to count him out, particularly if he could get state or federal help for his refinery.
"I knew him from when we were both kicked out of university as young blokes. And believe it or not, Clive's been in worse holes," Katter told Reuters.
Palmer told Australian media QNI had been forced into this position after failing to get "minimal" assistance from the Queensland state government.
QNI and the administrators, FTI Consulting, said they intended to run the business as usual, while FTI reviews the future of the company.
POLITICAL STAR FADES
Palmer, a law school dropout, made his first fortune in his early 20s by selling beach property in Queensland, before buying into a string of mining tenements in Western Australia just as the mining boom was set to take off.
Several deals to sell iron ore and coal to Chinese state-owned enterprises propelled him close to the top of a growing legion of super-rich Australian mining magnates.
However, he has had frequent business squabbles and one of his companies, Mineralogy, has been locked in a dispute over royalties with one-time partner Citic Pacific, a Hong Kong-based unit of China's state-backed CITIC. vary widely over Palmer's fortune, but Forbes put it at $895 million in 2013, a year later at $632 million and in 2015 he had dropped off Australia's top 50 rich list as demand for minerals cooled.
Palmer's political stock has also fallen, alongside his riches.
He entered politics in 2013 and his Palmer United Party captured a crucial handful of seats in the upper house of parliament, where his party held the balance and was able to block or pass legislation as an unlikely power-broker.
But his influence has waned after two out of three senators defected from 2014, citing difficulties working with Palmer.
TITANIC AND DINOSAUR THEME PARK
Palmer has stood out even in a country known for its larger-than-life tycoons.
In one outburst on Australia's state broadcaster, when asked about his legal battle with state-owned CITIC, he accused Beijing of wanting to take over Australia's ports to get its resources.
Palmer also called members of the Chinese government "mongrels" who "shoot their own people", a reference to the 1989 Tiananmen Square (N:SQ) massacre.
He later apologised.
His business methods have also often been unorthodox.
Scepticism dogged his 2009 purchase of the QNI nickel refinery after mining giant BHP Billiton (L:BLT) BHP.AX said it could no longer make money.
The following Christmas, Palmer presented 55 of its workers with a Mercedes Benz car and gave away 650 holidays to Fiji to employees and their partners to celebrate a bumper year of profitability.
He opened a theme park with life-sized dinosaurs on Queensland's coast. The park and a nearby resort now lie vacant and in disrepair.
In a plan received by some with incredulity and now on hold, he also pledged to build a replica of the Titanic for $500 million in a Chinese shipyard.
There are signs, however, the 61-year-old may now be ready for a slower pace.
"I'm just a retired tourist, you know. I'm looking forward to getting a caravan and going around Australia," Palmer told Reuters in December.