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

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

 

    As of December 31,  
    2015     2014  
At cost:            
Mineral rights   $ 6,131,230     $ 6,506,668  
Buildings     68,510,164       53,231,127  
Plant and machinery     195,295,877       177,485,689  
Motor vehicles     8,847       9,389  
Furniture, fixtures and office equipment     4,864,619       4,884,991  
Construction in progress     57,596       -  
Total     274,868,333       242,117,864  
Less: accumulated depreciation and amortization     (146,997,010 )     (117,767,083 )
Net book value   $ 127,871,323     $ 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 $42,526,151 and $37,219,221 as at December 31, 2015 and 2014, respectively.

 

During the year ended December 31, 2014, depreciation and amortization expense totaled $27,287,976 of which $25,811,070 and $1,476,906 were recorded as cost of net revenue and administrative expenses, respectively.

 

During the year ended December 31, 2015, depreciation and amortization expense totaled $28,746,069 of which $27,281,471 and $1,464,598 were recorded as cost of net revenue and administrative expenses, respectively.

 

In the third quarter of 2015, the Company incurred enhancement works in Factories No. 10 and 11 at costs of approximately $10,396,597 to the protective shells to transmission channels and ducts. In the fourth quarter of 2015, the Company incurred enhancement projects to our existing bromine extraction in Factory No. 10 and 11 at costs of approximately $12,088,375. The above enhancement projects have estimated useful lives of 5 to 8 years and are capitalized as buildings and plant and machinery.

 

In the third quarter of 2014, the Company incurred enhancement works in Factories No. 10 and 11 at costs of approximately $6,424,406 to the protective shells to transmission channels and ducts. The above enhancement projects have estimated useful lives of 5 to 8 years and are capitalized as buildings and plant and machinery.

 

For the years ended December 31, 2015 and 2014, ordinary repair and maintenance expenses were $607,688 and $1,050,204, respectively.