No substance to Padbury deal: Barnett

WA Premier says he has no intention to meet with junior miner about Oakajee proposal.

West Australian Premier Colin Barnett has dismissed the prospect of Padbury Mining's Oakajee proposed iron ore port and rail project receiving any government funding, The Australian reports.

According to the newspaper, Mr Barnett's comments come as the miner prepares to reveal the terms of its funding deal with companies controlled by Sydney entrepreneur Ronald Frank Bleyer, as scepticism grows around the terms of the deal and the sustainability of the subsequent 170 per cent increase in Padbury's share price during trading.

“It seems to me that there is little substance behind Padbury,” Mr Barnett said. “I haven't met with them -- I don’t intend to.”

Earlier this month Mr Barnett told The West Australian that China's state-owned conglomerate CITIC Group was likely to undertake the Oakajee project, with coordination from other Chinese companies including Sinosteel and Ansteel.