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5. PROPERTY, PLANT AND EQUIPMENT, NET
 3 Months Ended
Mar. 31, 2015
Property, Plant and Equipment [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

   

March 31,

2015

    

December 31,

2014

  
At cost:            
Mineral rights   $ 6,481,984     $ 6,506,668  
Buildings     72,570,939       53,231,127  
Plant and machinery     185,313,740       177,485,689  
Motor vehicles     9,354       9,389  
Furniture, fixtures and office equipment     5,142,913       4,884,991  
Total     269,518,930       242,117,864  
Less: Accumulated depreciation and amortization     (135,049,348 )     (117,767,083 )
Net book value   $ 134,469,582     $ 124,350,781  

 

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 or the government authority. The Company has not been able to obtain property ownership certificates over these buildings and salt pans. The aggregate carrying values of these properties situated on parcels of the land are $47,090,544 and $37,219,221 as at March 31, 2015 and December 31, 2014, respectively.

 

During the three-month period ended March 31, 2015, depreciation and amortization expense totaled $7,290,364, of which $6,932,259 and $358,105 were recorded as cost of net revenue and administrative expenses, 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.