SANTIAGO, Aug 25 (Reuters) - The management company at Los Pelambres, one of Chile's biggest copper mines, says it plans to appeal a court order which will force it to stop work on part of its El Mauro tailings dam project.

The company, Los Pelambres, was notified of the court order on Friday.

The document, issued by a local court in the town of Los Vilos, central Chile, ordered the company to halt construction of a canal through an estuary after a local farmer complained that the project would have a negative impact on the environment.

The company's management says the farmer's complaint is unfounded.

The El Mauro dam project has been plagued by legal problems since it was approved in 2004.

Antofagasta Plc <ANTO.L>, which owns the Los Pelambres mine, is building the dam to contain processed waste rock.

Some local farmers say the dam, which is nearly completed, has reduced water supply to their fields and could poison the water that remains.

In a statement released on Friday and posted on its Web site, Los Pelambres said it would appeal the court decision and was confident it would be overturned.

It said that of the 4,000 people working on the El Mauro project, only 270 would have to stop work and most of the construction would continue as normal.

The dispute over El Mauro is one of many which has pitted Chile's environmental lobby against the mining industry.

The Andean nation is by far the world's biggest producer of copper and relies heavily on mining for its economic well-being.

But northern Chile, where most of the copper deposits are, is also one of the driest areas on Earth, raising concerns over dwindling water resources.

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