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5. PROPERTY, PLANT AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net consist of the following:

	September 30, 2013			December 31, 2012
At cost:
Mineral rights	$	6,475,614		$	6,334,277
Buildings		51,782,238			50,905,337
Plant and machinery		169,451,661			166,121,329
Motor vehicles		9,344			9,140
Furniture, fixtures and office equipment		4,861,677			4,777,044
Construction in progress		308,622			-
Total		232,889,156			228,147,127
Less: Accumulated depreciation and amortization		(83,770,622	)		(62,204,585	)
Net book value	$	149,118,534		$	165,942,542

The Company has certain buildings and salt pans erected on parcels of land located in Shouguang, PRC, and such parcels of land are collectively owned by local townships. The Company has not been able to obtain property ownership certificates over these buildings and salt pans as the Company could not obtain land use rights certificates on the underlying parcels of land. The aggregate carrying values of these properties situated on parcels of the land are $38,652,646 and $35,988,055 as at September 30, 2013 and December 31, 2012, respectively.

During the three-month period ended September 30, 2013, depreciation and amortization expense totaled $6,794,439, of which $6,354,146 and $440,293 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended September 30, 2012, depreciation and amortization expense totaled $5,619,219, of which $5,275,200 and $344,019 were recorded as cost of net revenue and administrative expenses, respectively. During the nine-month period ended September 30, 2013, depreciation and amortization expense totaled $20,305,673, of which $19,069,116 and $1,236,557 were recorded as cost of sales and administrative expenses respectively. During the nine-month period ended September 30, 2012, depreciation and amortization expense totaled $16,737,318, of which $15,920,903 and $816,415 were recorded as cost of sales and

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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