Germany: Mining and Minerals

Coal is Germany's most important energy resource, although government policy is to reduce subsidies for coal extraction. Coal production has declined since 1989 as a result of environmental policy and the closing of inefficient mines in the former East Germany. As of October 2001, recoverable coal reserves were estimated at 72.8 billion short tons, the largest amount of any country in the then 15-member European Union (EU).

The two main grades of coal in Germany are “hard coal” and lignite, which is also called “brown coal.” Unfavorable geological conditions make the mining of hard coal economically uncompetitive, but a slight increase has occurred in lignite production since 1999. Despite its considerable reserves, environmental restrictions have led Germany to become a net importer of coal. Non-energy-related mining recovers potash for fertilizer and rock salt for edible salt and the chemical industry.

As of January 2004, proven oil reserves were 442 million barrels, a modest amount by international standards but still the fourth largest reserves in the EU. More than half of Germany's domestic oil production is attributable to the offshore Mittelplate field along the western coast of the German state Schleswig-Holstein.

Also as of January 2004, proven natural gas reserves were 10.8 trillion cubic feet, the third largest in the EU. Nearly 90 percent of Germany's natural gas production takes place in the state of Lower Saxony. In 2002 Germany imported 2.4 trillion cubic feet of natural gas, or 75 percent of its requirements. The most important source of natural gas imports is Russia, with a 40.8 percent share, followed by Norway at 31.5 percent, and the Netherlands at 22.3 percent.