Singapore, 26 July (Argus) — Australian producer Gloucester Coal has upgraded its coal reserves and resources estimates from previously announced volumes in March.

Since then, it has increased coal reserves by 31pc to 74.8mn t and coal resources by 16pc to 278.8mn t. The coal resources reported are inclusive of coal reserves.

“The current exploration programme targets are on track to identify approximately 130mn t of coal reserves by mid-calendar year 2011,” Gloucester chief executive Barry Tudor said.

The company aims to increase production to around 3.5mn t/yr from 2014, of which 2mn t will consist of high fluidity semi-hard coking coal, he added.

Gloucester is in talks with Hong Kong-based Noble over a potential transaction, which would involve Gloucester acquiring some of Noble's Australian coal assets. The two have not reached an agreement or made a decision with respect to any capital raising, Gloucester said in early July, in response to reports that it is seeking to raise $500mn.

Gloucester is also the target of an A$12.60/share ($11.30/share) takeover by Noble. Gloucester's independent directors have recommended that its shareholders accept Noble's offer.

Gloucester is 92.5pc owned by Noble and was the target of a takeover by Australian miner Macarthur Coal earlier this year, until Macarthur itself became a takeover target of US-based producer Peabody.

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