Expect a run in the Iron ore plays tomorrow...the Dow is likely...

Expect a run in the Iron ore plays tomorrow...the Dow is likely to be up again and Swan has just approved a further Chinese stake in FMG.......

THE green light given to Hunan Valin's $645 million cash injection into Fortescue Metals Group late yesterday is expected to trigger a fresh wave of Chinese investment in Australian miners.Mr Swan last night approved the application from Valin, China's ninth largest steelmaker, to acquire a 17.55 per cent shareholding in Fortescue, Australia's third biggest iron ore producer after Rio Tinto and BHP Billiton. The deal with Valin gives Andrew "Twiggy" Forrest's Fortescue much-needed capital to develop its iron ore operations in Western Australia's Pilbara at a time when alternative financing options are scarce due to the global credit crisis. "It shows within a certain scope the Foreign Investment Review Broad is willing to pass through stakes in companies deemed to be appropriate," he said.

"It has gone from an 'us and them' perspective to a partnership because we need Chinese capital to get these Australian mining projects off the ground."