Chile court rules tailings dam for Antofagasta's Los Pelambres mine safe

SANTIAGO, April 22 (Reuters) - A Chilean court ruled on Wednesday that the tailings dam for Antofagasta Minerals' flagship Los Pelambres copper mine is safe, though a separate appeal has not yet been decided on a judge's ruling to demolish the facility that holds refuse left over from the extraction process.

The massive tailings dam is at the center of a conflict with the local Caimanes community in central Chile, which claims it has dried up a local stream and contaminated underground water.

The La Serena appeals court unanimously rejected a lawsuit presented by residents of Caimanes that said the tailings dam was unsafe.

"This ruling backs our conviction that the El Mauro tailings dam does not represent a risk for people's safety and health," said the mine's chairman Francisco Veloso.

Separately, Antofagasta (Other OTC: ANFGF - news) is appealing another judge's ruling that said the company needs to destroy part, or all, of the tailings dam wall. (Reporting by Anthony Esposito; Editing by David Gregorio)