Japanese trading company Mitsui has placed the highest bid for around a 20% share in Canadian mining giant First Quantum Minerals' Zambian Sentinel and Kansanshi copper mines for roughly $2bn (Y308.82bn), reported Bloomberg, citing sources familiar with the matter.

The bid surpasses a competing offer from Saudi Arabia's Manara Minerals Investment.

The potential deal's terms are still under negotiation. The company could opt for an alternative buyer or retain its assets.

This development comes as First Quantum seeks to alleviate financial pressures following the mandatory closure of its Panamanian copper mine last year following public protests.

The Canadian company's shares have surged by 67% this year, amounting to a market value of around $10.8bn (C$15.08bn), with its Zambian operations contributing significantly to its copper production and revenue.

The interest in copper mines is on the rise globally, driven by the anticipated demand surge due to the metal's critical role in electric vehicle production and renewable energy infrastructure. However, the market faces a shortage of new mining projects.

Mitsui is known for securing stakes in mines to ensure a supply of essential materials for Japan's industries. Its bid reflects the competitive landscape where trading companies are increasingly contending with state-backed entities from regions such as the Middle East and China.

Manara Minerals Investment, with the backing of the Saudi sovereign wealth fund, has been pursuing a strategy to establish Saudi Arabia as a key player in the metals and mining sector.

The investment vehicle acquired a 10% stake in Vale's base metal division for around $2.5bn (SR9.38bn) earlier this year.

Representatives from Mitsui, First Quantum and Manara have not provided any comments on the ongoing discussions.