The parents of the first child who died after drinking chemically-tainted milk formula in China have been paid by Sanlu Group Co.

Yi Yongsheng and Jiao Hongfang, villagers in Gangu County of northwestern Gansu Province, confirmed with Xinhua on Friday that they received 200,000 yuan (29,247 U.S. dollars) from the company Wednesday.

Yi declined to give further details on the compensation. He said he was busy and then hung up the phone.

Their five-month-old son died on May 1, 2008 after suffering from kidney failure caused by the contaminated milk. He was believed to be the first child who died after drinking formula containing the industrial chemical, melamine.

By accepting the money from Sanlu, Yi and Jiao gave up their rights to sue the company.

Shen Xianlei, one of their lawyers, said the couple was unlikely to get more than 200,000 yuan by taking their case to court in Gansu, where death compensation is typically around 40,000 yuan.

However, Shen said in developed regions the amount offered by the companies might not be acceptable.

Yi filled out a form in Tianshui City on Wednesday and then received the money, according to Dong Junming, another lawyer working for the couple.

"Legal procedures are too complicated for them, which made them decide to take the money," said Dong.

Six babies died and 296,000 children were sickened by tainted milk. The melamine scandal was exposed in September 2008.

As of the beginning of December, there were still 861 children in the hospital suffering from kidney stones or urinary problems. The Ministry of Health has not provided updated numbers since then.