Troops loyal to ousted Libyan leader Col Mummar Gaddafi have launched fresh attacks around the town of Bani Walid. Loyalists are holding strategic high ground and are firing mortars and using snipers to target anti-Gaddafi forces at the northern gate of the town. Anti-Gaddafi forces are making slow progress at another loyalist stronghold - the coastal town of Sirte. Meanwhile the National Transitional Council, Libya's interim leadership, is discussing a new cabinet. 'Big fight' Anti-Gaddafi forces had tried to take Bani Walid, 140km (90 miles) south-east of the capital Tripoli, on Friday but were forced to retreat. Heavy clashes have continued since then. Reports from Bani Walid say explosions and sustained machine-gun fire were heard on Sunday morning when pro-Gaddafi forces shelled enemy positions on the outskirts of the town. Mortars targeted a building housing anti-Gaddafi troops, along with the town's northern entrance. One anti-Gaddafi commander, Absalim Gnuna, told Reuters news agency: "We fought all night. We have surrounded the city from all sides with the range of 40km. "Most areas north of the central valley are clear. It is a big fight." Mr Gnuna said he also had orders to try to help families trapped in the town to escape. Fighters from nearby Tajoura are reported to have arrived to reinforce the anti-Gaddafi units.