Sept 10 (Reuters) -

Copper prices in London inched higher on Wednesday, buoyed

by a landmark planned merger between Anglo American and Teck

Resources ( TECK ), and ongoing supply concerns following global mine

disruptions.

Three-month copper on the London Metal Exchange

edged up 0.08% to $9,922 per metric ton by 0230 GMT, while the

most-traded copper contract on the Shanghai Futures Exchange

eased 0.05% to 79,670 yuan ($11,179.09) a ton.

On Tuesday, London-listed miner Anglo American and

Canada's Teck Resources ( TECK ) announced plans to merge,

creating the world's fifth-largest copper company and marking

the sector's second-largest M&A transaction to date, a big bet

on copper by Anglo.

Analysts from ANZ noted that recent disruptions at major

mines may further tighten the copper market, which is already

facing a shortage of feedstock.

Freeport-McMoRan ( FCX ) announced on Tuesday a

temporary halt

on mining in Indonesia's major Grasberg mine after a large

flow of wet materials blocked access to parts of the underground

mine, restricting evacuation routes for seven workers.

Meanwhile, China's new bank loan issuance in August is

expected to have increased, a Reuters poll showed on Tuesday,

bouncing back from a shock contraction in the previous month.

Manufacturing activity had declined for a fifth straight

month in August, suggesting producers are awaiting further

clarity on a trade deal with the U.S. while domestic demand

remains sluggish.

Elsewhere, China Zinc Smelters Purchasing Team (CZSPT) set

processing fees for cargoes imported by the end of the fourth

quarter at $120-140 a dry metric ton, versus $80-100 for the

third quarter, state-backed research house Antaike said late on

Tuesday.

LME zinc gained 0.23%, while SHFE zinc

dipped 0.18%.

Nickel edged up 0.07%, and tin rose 0.66%,

while aluminium eased 0.06%, and lead lost 0.2%.

SHFE aluminium eased 0.02%, nickel lost

0.44%, and lead decreased 0.53%, while tin

edged up 0.01%.

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DATA/EVENTS (GMT)

1230 US PPI Machine Manuf'ing Aug

($1 = 7.1267 Chinese yuan)