Edmonton-based Altiplano Metals said the Chilean government has approved its application to incorporate an iron separator and a water recovery circuit to its El Penon plant.

The plant will process ore from the Farellon iron-oxide-copper-gold mine in Chile.

The introduction of this equipment will enable Altiplano to produce iron and generate a secondary revenue stream. Removing the iron from tailings will reduce tailings by 50%. The dewatering stack will create dry tailings, and also reduce the amount of freshwater consumption by approximately 75%.

The equipment will be delivered next week, and Altiplano has begun civil work including pad leveling, electrical, and plumbing.

"APN will be one of the first companies in the Chilean small mining sector to implement an industry-leading environmental process focussed on water conservation and waste reduction," Altiplano chief executive Alistair McIntyre said.

The El Penon plant uses flotation circuits to recover copper and gold, as well as a magnetic separation system for the recovery of magnetite and other iron minerals. A filter press system is used for copper concentrate and tails, while a disc filter is used for iron concentrate. This process is designed to reduce tailings by 50%.