So natives would own the rail line after 20 years or so, why so generous?
Is it really being generous?
Does Cliffs want to invest in a railroad for profit? More like they want to see a railroad in order that they can profit from a mining operation.
Does KWG want to own a railroad? More like they want to use it as a lever to ensure their orebody gets preference for mining.
A railroad will require a bil or so investment, and assumes a payback over twenty years. At the end of that twenty years, the rolling stock will all be due for replacement, and the company is operating at either a small profit, or a small deficit, and won't warrant the additional investment required. Better that it gets turned over to some entity that has seemingly bottomless pockets (Gov't assistance), and let them figure it out. Over the years I have watched countless times where the federal gov't has kicked in seed money for an enterprise that is supposed to make native entrepeneurs self sufficient. Haven't seen them do a railroad yet, so why not now.
Best regards K