SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION

NOTE 29 - SEGMENT INFORMATION

The Company follows FASB ASC 280-Segment Reporting, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. The Company has two operating segments identified by product, “fluorite” and “nonferrous metals”. The fluorite segment consists of our fluorite extraction and processing operations conducted through the Company’s subsidiaries, Xiangzhen Mining and Xinyi Fluorite. The nonferrous metals segment consists of the Company’s copper, zinc, lead and other nonferrous metal exploration, extraction and processing activities conducted through the Company’s subsidiaries, Qianzhen Mining and Xingzhen Mining.

The Company primarily evaluates performance based on income before income taxes and excluding non-recurring items.

The segment data presented below was prepared on the same basis as the Company’s consolidated financial statements.

Year ended December 31, 2011	Fluorite			Nonferrous metals			Consolidated
Segment revenue	$	25,571		$	4,980		$	30,551
Inter-segment revenue		-			-			-
Revenue from external customers	$	25,571		$	4,980		$	30,551
Segment income (loss)	$	6,992		$	(3,247	)	$	3,745
Unallocated corporate loss								(2,218	)
Income from continuing operations before income taxes and minority interests								1,527
Income tax expenses								(1,235	)
Loss from discontinuing operations before income taxes and minority interests							$	(89	)
Net income							$	203
Total segment assets	$	79,076		$	15,392		$	94,468
Inter-segment receivables		(12,660	)		2,966			(9,694	)
	$	66,416		$	18,358		$	84,774
Other unallocated corporate assets								542
							$	85,316
Other segment information:
Depreciation and amortization	$	3,183		$	988		$	4,171
Expenditure for segment assets	$	3,475		$	1,718		$	5,193

Year ended December 31, 2010	Fluorite			Nonferrous metals			Consolidated
Segment revenue	$	8,012		$	3,600		$	11,612
Inter-segment revenue		-			-			-
Revenue from external customers	$	8,012		$	3,600		$	11,612
Segment loss	$	(436	)	$	(2,444	)	$	(2,880	)
Unallocated corporate income (loss)							$	(215	)
Loss from continuing operations before income taxes and minority interests							$	(3,095	)
Income tax expenses								-
Loss from discontinuing operations before income taxes and minority interests								(193	)
Net loss								(3,288	)
Total segment assets	$	37,616		$	25,826		$	63,442
Inter-segment receivables		(12,175	)		(8,343	)		(20,518	)
	$	25,441		$	17,483		$	42,924
Assets —discontinuing operations								1,188
Other unallocated corporate assets								80
							$	44,192
Other segment information:
Depreciation and amortization	$	1,488		$	946		$	2,434
Expenditure for segment assets	$	1,455		$	644		$	2,099

The following summarizes identifiable assets by geographic area:

	December 31,
	2011		2010
	(In thousands)		(In thousands)
China	$	84,774	$	44,112
Unallocated corporate assets		542		80
	$	85,316	$	44,192

The following summarizes net income (loss) by geographic area:

	Year Ended December 31,
	2011			2010
	(In thousands)			(In thousands)
China	$	2,421		$	(3,073	)
Unallocated corporate operating income (loss)		(2,218	)		(215	)
	$	203		$	(3,288	)