Chile bumps up copper price forecast, flags lagging Collahuasi output

Chile, the world's largest copper supplier, raised its forecast for prices on Wednesday. However it noted that lagging production from major mines operated by Glencore or Anglo American was a factor in the slowdown of economic growth.

In a speech to Congress, Finance Minister Mario Marcel raised the government's forecast of average copper prices this year from $4.26 to $4.28 a pound.

Marcel maintained that the official estimate of gross domestic product growth (GDP) for this year was 2.5%. However, he noted that non-mining GDP had compensated for the drop in mining's contribution.

He said that the drop in Collahuasi production was a major factor in recent months.

On Wednesday, the chairman of Chilean State Miner Codelco - the world's biggest copper producer - spoke.

The United States' 50% tariffs set to take effect on copper on August 1, had led to record prices in the country, with price volatility due to global uncertainty.

The Chilean finance ministry has maintained its forecast of the average copper price for next year at $4.30 a pound. The ministry also maintained its inflation forecasts for this year as well as next, and the GDP growth projections for next year. (Reporting and editing by Natalia Siniawski; Fabian Cambero)

(source: Reuters)