On Wednesday, Teck Resources Ltd (TECK.US) reduced production expectations for its flagship copper mine in Chile, less than a month after completing one of the largest mining deals of the past decade with Anglo American.

Teck Resources Ltd has lowered production forecasts for its Quebrada Blanca copper mine, located high in Chile's Atacama Desert, as part of a comprehensive operational review. The company reduced this year's production outlook to 170,000-190,000 tons, down from the previous expectation of 210,000-230,000 tons. It also lowered projections for the 2026-2028 period.

Teck Resources Ltd had previously cut production expectations for the troubled mine in July, citing project costs that exceeded budget by over 80% and significant delays behind the original schedule.

Anglo American's acquisition of Teck Resources Ltd values the company at over $50 billion, making it one of the largest mining deals of the past decade. The transaction gives Anglo American access to Teck Resources Ltd's prominent copper mining assets, after the company had been a frequent acquisition target and faced shareholder pressure.

Anglo American stated that the review and production scale reduction have not changed the "strategic significance" of the deal. The company said: "Anglo American fully supports Teck Resources Ltd's more cautious approach to enhancing Quebrada Blanca mine capacity over the coming years."

Meanwhile, copper prices continue their upward momentum this week, approaching the historical highs set in May last year, following last week's largest single-week gain in a year. Currently, LME copper futures are trading near $10,700 per ton.

Previously, Goldman Sachs released a research report stating that based on resource constraints and structural demand growth in key industries, copper prices are expected to hover between $10,000-11,000 per ton. The firm raised its 2026 copper price forecast from $10,000 to $10,500 per ton, considering the shutdown of Indonesia's Grasberg mine, US interest rate cuts, and further dollar depreciation, while maintaining its 2027 forecast of $10,750 per ton and expecting copper prices to remain at $10,000 levels for the remainder of 2025.