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5. PROPERTY, PLANT AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2015
Property, Plant and Equipment [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

   

June 30,

2015

    

December 31,

2014

  
At cost:            
Mineral rights   $ 6,512,242     $ 6,506,668  
Buildings     72,909,702       53,231,127  
Plant and machinery     186,178,788       177,485,689  
Motor vehicles     9,397       9,389  
Furniture, fixtures and office equipment     5,166,920       4,884,991  
Total     270,777,049       242,117,864  
Less: Accumulated depreciation and amortization     (143,126,756 )     (117,767,083 )
Net book value   $ 127,650,293     $ 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. 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 $46,566,572 and $37,219,221as at June 30, 2015 and December 31, 2014, respectively.

 

During the three-month period ended June 30, 2015, depreciation and amortization expense totaled $7,438,801, of which $7,060,750 and $378,051 were recorded as cost of net revenue and administrative expenses, 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 six-month period ended June 30, 2015, depreciation and amortization expense totaled $14,729,165, of which $13,993,009 and $736,156 were recorded as cost of sales 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.