BEIJING, Dec 11 (Reuters) - China is considering a compensation proposal for victims sickened or killed by toxic infant milk formula, a government spokesman said, following months of contention over redress for stricken families.

Chinese authorities recently said six children died and 290,000 children suffered "urinary system abnormalities", apparently after consuming Sanlu-brand milk powder and a "handful of other milk powder brands with problems".

A spokesman for the Ministry of Health, Mao Qun'an, said the "relevant departments are now assessing a compensation plan for the Sanlu infant milk powder incident," the official Xinhua news agency reported late on Wednesday.

The Sanlu dairy group, partly owned by New Zealand's Fonterra group, sold milk powder contaminated with an industrial chemical, melamine, that caused kidney stones and other agonising complications in infants.

Melamine can be used to cheat quality checks, falsely showing higher protein levels than actually exist.

Chinese media first reported in September that babies had fallen ill from the formula. But officials have since acknowledged that the Sanlu Group, the main source of the tainted milk, and officials hid the problem for many months.

Families of children killed and sickened have turned to volunteer lawyers, threatening to sue Sanlu and perhaps others. But their efforts have been stymied by authorities, apparently worried that court cases could inflame public anger over the scandal.

The scandal has also prompted bans and extra checks on Chinese milk and food products in dozens of export markets, and melamine has been found in a range of products, from candy to eggs. (Reporting by Chris Buckley; Editing by Ken Wills and Valerie Lee)

AlertNet news is provided by