Western Mining Co., China's second- largest producer of lead concentrate, said full-year profit rose 12 percent as it benefited from higher prices.

Net income rose to 1.73 billion yuan ($247 million), or 0.80 yuan a share, the Xining, Qinghai province-based company said today in a statement to the Shanghai stock exchange. The company on March 25 reported an unaudited profit of 1.7 billion yuan.

The price of lead surged 49 percent last year after China cut exports and Australia suspended shipments from a mine, contributing to a global shortage. Production could exceed demand this year, Lehman Brothers Holdings Inc. said April 3.

``The supply shortfall may ease this year as China and overseas mining companies increase production, and therefore we are less optimistic on prices,'' Li Huazheng, an analyst at Shanghai Securities Co., said by phone before the announcement.

Sales climbed 6 percent to 8.7 billion yuan, the company said.

Ivernia Inc., barred a year ago from exporting 3 percent of the world's mined lead from Western Australia on environmental and health concerns, was awaiting final approval to start shipment again, it said March 28.

Western Mining is also China's fourth-biggest producer of zinc concentrates and seventh-largest for copper concentrates. It owns four mines and has a 41 percent stake in the Yulong copper mine, which will start production in the third quarter. It controls zinc, lead and aluminum smelters.