Yanzhou may net Oz's Felix Resources

China's Yanzhou Coal has reached an agreement with Australian coal miner Felix Resources Ltd on a potential takeover transaction, a source familiar with the matter said yesterday.

"The details and the terms of the agreement are not known yet, but the two parties have reached an agreement," the source said.

The two companies halted trading of their shares amid speculation that China's fourth-biggest coal producer plans a takeover bid for its Australian rival.