March 12, 2018 / 1:02 AM / a year ago

China's CITIC estimates up to $1 billion impairment on Australia's Sino Iron project

HONG KONG (Reuters) - Chinese conglomerate CITIC Ltd (0267.HK) said it would book an impairment of $800 million to $1 billion on the value of its Sino Iron project in Australia for fiscal 2017.

“Impairment is a non-cash accounting item, but it will reduce the company’s 2017 reported profits,” Chairman Chang Zhenming said a filing to the Hong Kong bourse late on Sunday.

The company gave no further details. It is due to announce final results later in March.

In November, the Supreme Court of Western Australia awarded Australian businessman Clive Palmer’s company about $150 million in damages in a dispute with CITIC regarding Sino Iron mine.

CITIC had in January filed an appeal regarding the judgment.

In its 2016 results the Chinese company made a non-cash impairment charge of HK$7.2 billion on the Sino Iron mine due to lower forecasts for the long-term price of iron ore.

(Corrects stock code for CITIC in first paragraph.)

Reporting by Donny Kwok; Editing by Stephen Coates

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