A crane uses a mysterious object ‘X’ to separate objects made of iron from junk. The object ‘X’ is most probably:
Electromagnet
The crane has to lift magnetic material during which the object should act as a magnet. But, while dumping it should lose its magnetic properties. So, the crane uses an electromagnet.
If it uses a permanent magnet the crane won't be able to sort iron objects after some of them are accumulated on the magnet. As the ones that got stuck to the magnet cannot be removed easily. It cannot be employed for separating large amounts of junk.
An electric air blower is used to separate light objects from the heavy ones, i.e if light iron objects are present in the junk they cannot be separated.
A lifting bucket just lifts objects, it cannot sort them.