An internationally recognised and uniform method for classification, categorisation and designation of mineral and energy resources is not yet available. With the increasing need for reliable and comparable coal resource data it is necessary to standardise the traditional classification procedures by quantifying the three basic evaluation criteria of economic feasibility, geologic assurance and recovery. For well documented deposits, geostatistical methods can considerably improve classification quality. A review is undertaken of major classification with particular emphasis on those that incorporate limits on estimation error.A geostatistically based algorithm for classifying coal resources within the current Queensland and New South Wales codes has been developed.Application of the classification algorithm for resources from a number of seams exhibiting different structural characteristics is assessed. The method is found to give classification results that closely reflect the error associated with an estimate of resource quantities based on current sampling densities.lbis requires a careful geostatistical analysis with an emphasis on geological awareness. Resource category restrictions although albitrarily assigned should remain constant for all deposits being compared. This requires some engineering judgement with additional interpretation also required for isolated and peripheral block.