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4. PROPERTY, PLANT AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2014
Property, Plant and Equipment [Abstract]  
4. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

   

June 30,

2014

    

December 31,

2013

  
At cost:            
Mineral rights   $ 6,470,836     $ 6,530,158  
Buildings     52,858,833       53,343,419  
Plant and machinery     171,267,783       172,842,611  
Motor vehicles     9,337       9,423  
Furniture, fixtures and office equipment     4,858,090       4,902,627  
Total     235,464,879       237,628,238  
Less: Accumulated depreciation and amortization     (103,991,981 )     (91,227,802 )
Net book value   $ 131,472,898     $ 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 $38,110,068 and $39,565,302 as at June 30, 2014 and December 31, 2013, respectively.

 

During the three-month period ended June 30, 2014, depreciation and amortization expense totaled $6,788,929, of which $6,469,584 and $319,345 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended June 30, 2013, depreciation and amortization expense totaled $6,812,181, of which $6,504,164 and $308,017 were recorded as cost of net revenue and administrative expenses, respectively. During the six-month period ended June 30, 2014, depreciation and amortization expense totaled $13,638,256, of which $12,997,481 and $640,775 were recorded as cost of sales and administrative expenses respectively. During the six-month period ended June 30, 2013, depreciation and amortization expense totaled $13,554,571, of which $12,758,306 and $796,264 were recorded as cost of sales and administrative expenses respectively.