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5. PROPERTY, PLANT AND EQUIPMENT, NET
 3 Months Ended
Mar. 31, 2014
Property, Plant and Equipment [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

   

March 31,

2014

    

December 31,

2013

  
At cost:            
Mineral rights   $ 6,471,632     $ 6,530,158  
Buildings     52,865,338       53,343,419  
Plant and machinery     171,332,909       172,842,611  
Motor vehicles     9,339       9,423  
Furniture, fixtures and office equipment     4,858,688       4,902,627  
Total     235,537,906       237,628,238  
Less: Accumulated depreciation and amortization     (97,221,803 )     (91,227,802 )
Net book value   $ 138,316,103     $ 146,400,436  

 

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 $38,662,731 and $39,565,302 as at March 31, 2014 and December 31, 2013, respectively.

 

During the three-month period ended March 31, 2014, depreciation and amortization expense totaled $6,849,327, of which $6,527,898 and $321,430 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended March 31, 2013, depreciation and amortization expense totaled $6,720,849, of which $6,232,602 and $488,247 were recorded as cost of net revenue and administrative expenses, respectively.