Chinese giant CITIC is taking yet another big hit on its Sino Iron project, flagging it will write down the value of the Pilbara magnetite mine by as much as $US1 billion ($1.27 billion).

The writedown is the fourth since Sino Iron entered production in 2013.

CITIC disclosed the latest hit in a short filing to the Hong Kong Stock Exchange, saying only that it would book an estimated impairment of between US$800 ($1015.93) million and US$1 ($1.27) billion in its 2017 accounts.

The group spent US$10 ($12.70) billion building Sino Iron, 100km south-west of Karratha. The project ships magnetite concentrate to CITIC’s steel plants and other steel producers in China.

Including the latest impairment, the group has booked more than US$5 ($6.35) billion of writedowns over the past four years.

CITIC is embroiled in legal disputes with businessman Clive Palmer and his private company Mineralogy.

Last year, it was ordered to pay Mineralogy US$149.4 ($189.72) million in back royalties under a 2006 agreement between the two parties laying out the development terms for Sino Iron.

Mineralogy has since launched a $2.7 billion writ against CITIC.

Image: CITIC's Sino Iron project. The West Australian.