NOTE 5

PREPAYMENTS, OTHER RECEIVABLES AND CURRENT ASSETS

In the second quarter of 2011, the Company initiated purchases of scrap copper from overseas via a third-party import-export company. Pursuant to the terms of the Company’s purchase agreements with that third-party, the Company was required to make prepayments in advance of delivery of the purchased scrap copper to the Company’s production facilities. As of June 30, 2011, such prepayments were $23,594,404.

Other receivables and current assets consisted of the following:

	June 30,		December 31,
	2011		2010

Prepaid insurance	$	369,750	$	-
Other prepayments		59,895		-
Other receivables		118,823		21,967
Less: Allowance for valuation and doubtful debts		-		-

	$	548,468	$	21,967