SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 17. SEGMENT INFORMATION 

The Company’s business units have been aggregated into two reportable segments, as defined by ASC Topic 280:

Mining management business – project management of gold mining operations;

Mining technical service business – provision of mining consulting and technical services, ceased

The Company operates these business segments in the PRC and all of the identifiable assets of the Company are located in the PRC during the years presented.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company has no inter-segment sales for the years ended December 31, 2012 and 2011. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Summarized financial information concerning the Company’s reportable segments is shown in the following table for the years ended December 31, 2012 and 2011:

	Year ended December 31, 2012
	Mining management business		Mining technical service business		Total
Operating revenues, net:
- Products	$	5,039,321	$	-	$	5,039,321
- Service		-		-		-
Total operating revenues		5,039,321		-		5,039,321
Cost of revenues		(5,037,214)		-		(5,037,214)
				-
Gross profit		2,107		-		2,107
Depreciation and amortization		2,523,362		-		2,523,362
Total assets		14,718,496		-		14,718,496
Expenditure for long-lived assets	$	617,219	$	-	$	617,219

	Year ended December 31, 2011
	Mining management business		Mining technical service business		Total
Operating revenues, net:
- Products	$	3,244,290	$	-	$	3,244,290
- Service		-		576,883		576,883
Total operating revenues		3,244,290		576,883		3,821,173
Cost of revenues		(4,731,501)		(144,290)		(4,875,791)
Gross (loss) profit		(1,487,211)		432,593		(1,054,618)
Depreciation and amortization		1,359,539		25,888		,1,385,427
Total assets		15,367,116		-		15,367,116
Expenditure for long-lived assets	$	10,835,495	$	-	$	10,835,495

All of the long-lived assets are located in the PRC.