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5. PROPERTY, PLANT AND EQUIPMENT, NET
 6 Months Ended
Jun. 30, 2016
Property, Plant and Equipment [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT, NET

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

 

   

June 30,

2016

    

December 31,

2015

  
At cost:            
Mineral rights   $ 6,003,828     $ 6,131,230  
Buildings     67,199,375       68,510,164  
Plant and machinery     191,237,780       195,295,877  
Motor vehicles     8,664       8,847  
Furniture, fixtures and office equipment     4,763,536       4,864,619  
Construction in process     422,139       57,596  
Total     269,635,322       274,868,333  
Less: Accumulated depreciation and amortization     (157,086,213 )     (146,997,010 )
Net book value   $ 112,549,109     $ 127,871,323  

 

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 $40,346,467 and $42,526,151as at June 30, 2016 and December 31, 2015, respectively.

 

During the three-month period ended June 30, 2016, depreciation and amortization expense totaled $6,644,571, of which $6,306,337 and $338,235 were recorded as cost of net revenue and administrative expenses, 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 six-month period ended June 30, 2016, depreciation and amortization expense totaled $13,514,292, of which $12,827,797 and $686,495 were recorded as cost of sales 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.