LANZHOU -- Three hundred and fifty four people, including 146 children, in northwest China's Gansu Province have been confirmed to be suffering from lead poisoning, according to local officials.

The victims are from the villages of Xinsi and Muba.

The stricken children were hospitalized and their treatment is being paid for by the local government. None of them are in serious condition, said the local official.

Hu Hongtao, head of the county government's publicity department, said rumors that more than a thousand were hospitalized were untrue.

The first patient was a five-year-old boy who was discovered to be suffering from lead poisoning in a hospital in Xi'an when he was being treated for a different medical emergency. His symptoms included no appetite, stomach pain and weight loss.

Other children with similar symptoms were then sent for check-ups and more cases of lead poisoning were discovered.

Villagers suspect they were sickened by discharge from a nearby lead smelting plant which released water and air pollution.

The smelter has been ordered to suspend production and investigators are testing the water and soil.

Excessive amounts of lead in the body harms the nervous and reproductive systems and causes high blood pressure and anemia.