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SYDNEY, Dec 5 (Reuters) - China's Yanzhou Coal Mining Co Ltd is in talks with Australian coal producer Felix Resources Ltd on a possible takeover, a source familiar with process told Reuters on Friday. The source declined to be identified as the discussions were confidential. Felix declined to comment. Earlier, the Australian Financial Review said Yanzhou was in talks to buy Felix for more than A$3 billion ($1.9 billion). ($1=A$1.53) (Reporting by Denny Thomas;) Keywords: FELIX/YANZHOU SHARES (denny.thomas@reuters.com; +61 2 9373 1812; Reuters Messaging: denny.thomas.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved.
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