Padbury’s Oakajee plan ‘unrealistic’: WA Premier

West Australian Premier Colin Barnett said there is “very little prospect” Padbury Mining’s $6 billion plan to develop the Oakajee rail and port project would gain his government’s backing.

West Australian Premier Colin Barnett said there is “very little prospect” Padbury Mining’s $6 billion plan to develop the Oakajee rail and port project would gain his government’s backing.

In what comes as a blow to the seemingly shaky deal, Barnett told reporters “there is little substance behind Padbury.”

He said he had not meet with representatives of the junior mining company and did not intend to, The Australian reports.

The strongly worded comments come as Padbury is today preparing to announce to the market the funding arrangements for the deal.

Yesterday, Padbury revealed Sydney businessman Ronald Bleyer was tied to the two companies involved the development, Superkite and Alliance Super Holdings.

Bleyer this week told the media he was ''chairman of the finance committee” for the companies.

Asked if he would support a ­realistic proposal put forward by Padbury, Barnett said:

“I don’t believe it’s realistic — simple as that.”

Padbury Mining first announced it had backing for the Oakajee project on April 11.

ABC reports the Australian Securities and Investments Commission is looking into Padbury's disclosure and share trading in relation to the deal.

Bleyer has been involved in a number of failed business ventures of late.

Last month the NSW Supreme Court ordered Superkite and Alliance Super Holdings repay money to aged care company Craigcare after a $500 million funding deal failed.

While last year, a $260 million deal with junior mining company Fairstar Resources also fell through.

Padbury is expected to announce the funding deal rests on the support of a Korean construction company fronting up 20 per cent of the project costs.

The company’s shares remain suspended.