Meanwhile, Gloucester Coal said yesterday merger discussions with Yanzhou Coal were progressing to schedule and it would update the market next week. Gloucester blamed a weak export market for its reported interim net loss of $37 million, down from a $23 million a year ago, despite big rises in production and sales volumes. Gloucester said the market would remain weak for the rest of the financial year, particularly in metallurgical coal. It forecast EBITDA (excluding merger transaction costs) for the full year of between $45 million and $55 million in 2011-12.