I think the plan seems just a bit ambitious, but I'm not putting down the possibility of it actually working. I'd much rather see the money and effort going into an existing RR in the area, or one that wouldn't draw tourism away from them. The mine idea is appealing to me though.
I do oppose the "developing" around the mine if the deal is closed, since it would destroy the look and feel of a mine site. The road paralleling the tracks also isn't good for the scenic aspect of things, but it helps with railfanning :-)