Glencore is not considering spending billions of dollars on a company focused on a graphite-vanadium project in Mozambique, Hotline understands.

Reports were rubbished on Thursday July 10 that the commodities major was "taking a close look" at buying Australia-listed junior Syrah Resources, whose flagship is the Balama project in northern Mozambique, for the extraordinary sum of A$2 billion ($1.88 billion).

Several news outlets in Australia reported that Glencore had made an informal approach to Syrah on the basis that vanadium is key to the growing energy storage sector, but Hotline now understands Glencore never made any such approach.

Syrah’s share price nonetheless shot up almost 28% to A$5.49 on the Australian Stock Exchange by the close of trading on Thursday, and trading temporarily halted during the day.

The company was reported to have said it receives approaches from time to time – without naming anyone in particular – but that none of these had progressed to formal discussions.