I'm no smith yet (trying though) but as I understand it, high altitude is only a problem when you're dealing with athmospheric/venturi gas burners which require a certain athmospheric pressure to ensure an adequate fuel mix.
The rareified athmosphere could perhaps pose a problem to combustion, but only at very high altitudes. Assuming a simple forge with hide bellows, I don't think people would have problem smelting at high altitudes. Material availability is of greater concern I think. Mining ore in a low-oxygen environment sounds particualrly difficult.
Then again, why talk of high altitudes? How many urban/production centres were high up in the mountains (Machu Pichu, yes, but others?). Very many cities were far lower down, despite being in the Andes.
Thoughts...
Emanuel
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