Gloucester ups exploration

GLOUCESTER Coal has boosted its coal reserves in New South Wales by 31% to 74.8 million tonnes, while commodities trader Noble Group increased its stake to above 90% of the coal producer.
Gloucester ups exploration Gloucester ups exploration Gloucester ups exploration Gloucester ups exploration Gloucester ups exploration

Leighton works at the Duralie mine.

Blair Price

Total coal resources from its two open cut mines and other acreage in the Gloucester Basin also increased, up 16% to 278.8Mt.

Gloucester CEO Barry Tudor said the company will maintain its intensive focus on exploration.

“The current exploration program targets are on track to identify approximately 130 million tonnes of coal reserves by mid-calendar year 2011,” he said.

“This result is approximately one year ahead of the original schedule announced in 2009.

“Our continued exploration success underpins the company's committed growth plans which will increase production to approximately 3.5Mt from 2014, of which 2Mt will consist of our high fluidity semi-hard coking coal."

The total underground resources at its Duralie mine include 0.9Mt measured, 39.9Mt indicated and 59Mt inferred.

Total open cut resources include 14.5Mt measured, 126.5Mt indicated and 141Mt inferred.

The Duralie mine holds 10.6Mt of proven reserves and 0.6Mt of probable reserves.

The Stratford mine has 1.8Mt of proven reserves and 0.4Mt of probable reserves.

Hong Kong-based Noble bought up 87.7% of Gloucester following its $7 cash takeover offer last year.

After a failed attempt to merge with Macarthur Coal, Noble activated a $12.60 per Gloucester share offer first made in April.

Noble subsidiary Osendo owned 92.54% of Gloucester by July 7.

A week ago Neil McKenzie was appointed joint company secretary and chief financial officer of Gloucester, replacing Peter Scott who resigned.

Gloucester shares are up 2c to $12.45 this morning.

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