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

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

 

    September 30, 2016   December 31, 2015
At cost:            
Mineral rights   $ 5,962,024     $ 6,131,230  
Buildings     67,954,932       68,510,164  
Plant and machinery     203,242,535       195,295,877  
Motor vehicles     8,603       8,847  
Furniture, fixtures and office equipment     4,730,368       4,864,619  
Construction in process     172,925       57,596  
Total     282,071,387       274,868,333  
Less: Accumulated depreciation and amortization     (159,646,621 )     (146,997,010 )
Net book value   $ 122,424,766     $ 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 $39,389,001 and $42,526,151 as at September 30, 2016 and December 31, 2015, respectively.

 

During the three-month period ended September 30, 2016, depreciation and amortization expense totaled $5,435,740, of which $5,104,288 and $331,452 were recorded as cost of net revenue and administrative expenses, respectively. During the three-month period ended September 30, 2015, depreciation and amortization expense totaled $6,960,873, of which $6,592,218 and $368,655 were recorded as cost of net revenue and administrative expenses, respectively. During the nine-month period ended September 30, 2016, depreciation and amortization expense totaled $18,783,424, of which $17,765,477 and $1,017,948 were recorded as cost of sales and administrative expenses respectively.  During the nine-month period ended September 30, 2015, depreciation and amortization expense totaled $21,690,038, of which $20,585,226 and $1,104,812 were recorded as cost of sales and administrative expenses respectively.