The plant will use the E-LIX technology to produce high-purity copper, lead, zinc, and precious metals on-site.

The development is also expected to reduce Atalaya's carbon footprint through a reduction in land and sea freight and by utilising power from Proyecto Riotinto's planned solar plant.   

E-LIX is an electrochemical extraction process developed and owned by Lain Technologies funding from Atalaya. Atalaya has exclusive rights to use the technology within the Iberian Pyrite Belt.

The phase 1 plant can produce between 3,000 and 10,000 tonnes of copper or zinc metal per year, depending on the ratio of copper to zinc in the concentrate feed.

Estimated capital expenditure for the phase 1 construction is €12 million, and construction will begin in the coming weeks, aiming to be operational in 2022.

The technology will allow metal recoveries of over 90% from polymetallic concentrates, compared to recoveries of 60-80% from flotation.

"Phase 1 of the new E-LIX plant is likely to have only a minor impact on our near-term estimates," BMO said in a note. "However, the bigger picture is that if Atalaya can demonstrate its success at a larger scale, the process could unlock significant resources in the region by increasing recoveries and improving economics related to these complex polymetallic deposits."

Atalaya shares were down 1.3% at 429.20p at 11.49 London time, amid a broader market selloff driven by US monetary policy announcements on Wednesday.