PERTH (miningweekly.com) – Chinese major CITIC has warned shareholders of a write-down of between $1.4-billion and $1.8-billion on its Sino iron-ore project, in Western Australia, for the 2014 financial year.
The miner blamed the falling iron-ore price for the massive impairment charge.
The $9.6-billion Sino project started iron-ore exports three years behind schedule, and was still ramping up to meet its 24-million-tonne-a-year planned capacity.
CITIC noted this week that the construction of production lines three to six was progressing according to plan, and of the four remaining lines, three and four were targeted to start commissioning in late 2015, followed by lines five and six in 2016.
The plan was to have all six production lines operational by the end of 2016.