A method for removing metals from metal-containing acidic mine wastewater uses a basic sludge produced by the method for treating the wastewater. The wastewater is mixed with a lime slurry and with the basic sludge. This mixture is allowed to separate into an aqueous effluent and an acidic sludge. The effluent is mixed with the lime slurry and with a composition containing an iron compound, to produce a mixture. This mixture is allowed to separate into an aqueous effluent and the basic sludge. Lignin derivatives, such as calcium lignosulfonate, may be included in the treatment mixture.