THE MINERAL INDUSTRY OF THE GERMAN DEMOCRATIC REPUBLIC 383 
 
plant for production of granulated potash fertilizer. One of Kloeckner's
partners in the project is to be Philipp Bros. of the United States. 
 
MINERAL FUELS 
 
The GDR is deficient in fossil fuels such as petroleum, natural gas, and
hard coal, and thus is forced to import most of these. For cost-saving purposes,
the GDR is utilizing as much of its single abundant energy source, lignite,
as possible. Lignite, which is available domestically in abundance, accounts
for two-thirds of domestic primary energy consumption. The GDR meets over
97% of its petroleum requirements from abroad, including about 90% from the
U.S.S.R. The small domestic natural gas yield (about 8.5 billion cubic meters)
is supplemented exclusively by imports from the U.S.S.R. The GDR has recently
become an importer of metallurgical hard coal for its smelter industry. Overall,
the dependence of the energy industry on foreign deliveries has increased
steadily. To date, the most important supplier remains the 
U.S.S.R. 
 Electric energy in the GDR is generated from all existing sources, including
coal, petroleum, gas, uranium, and hydropower. In 1979, just over 100 billion
kilowatt-hours of electric energy was generated. The estimated current electric
power capacity of the GDR is 18,500 megawatts. The GDR is planning to intensify
its research into generation and utilization of solar energy for heating
industrial and residential buildings, as well as other installations. The
GDR is a high energy user, and officials are 
attempting to curb consumption of energy resources an average of 4%. New
powerplants, however, are still being planned. Jeanschwalde, near Cottbus,
for example, is the site of the next large powerplant which will utilize
lignite from nearby surface mines. it is expected that this plant will require
several years of construction and will employ up to 6,000 workers during
construction.22 
In 1979, the Ministry of Coal and Energy and the Price Office ordered increases
of up to 3% in energy prices to go into effect in 1980. The increases were
intended to encourage conservation and counter growing Soviet criticism that
CMEA countries, including the GDR, are not doing enough to conserve energy.
Price increases for electricity, oil, and natural and manufactured gas in
1980 are expected to mainly affect industrial users; consumer prices are
to remain unchanged by increasing subsidies. Furthermore, according to official
reports, the Ministry now has direct authority to issue directives to individual
areas and districts on the economic use of energy, supplies of heat to centrally
heated housing complexes, and supplies of solid fuels. The districts were
ordered to build up sufficient fuel stocks to bridge any possible supply
delays. In 1979, Klaus Siebold, Minister of Coal and Energy, was dismissed
and replaced by Wolfgang Mitzinger. Siebold's replacement resulted from the
collapse of energy supplies during the winter of 197879, allegedly caused
by his inefficient management.23 
Total estimated primary energy balances for 1978 and 1979 are shown in table
4. 
 
Table 4.—German Democratic Republic: Primary energy balance for
1978
and 1979 
(Million tons of standard coal equivalenv) 
Year 
Total 
prunary 
(lignite, 
~v, 
cçud~ 
pe~o~'um 
Natu~al 
assc~ateci 
Hydro- 
electnc 
N i ucear 
1978: 
 
 
 
 
 
 
Production2                
96.0 
83.7 
0.1 
11.4 
0.2 
0.6 
 Imports                   
 Exports                   
 Apparent consumption        
1979: 
41.3 
 .8 
136.5 
7.0 
 .7 
90.0 
29.3 
~ 
29.4 
4.8 
~ 
16.2 
.2 
.1 
.3 
-- 
.6 
Production2                
96.5 
84.2 
.1 
11.4 
.2 
.6 
Imports                   
Exports                   
Apparent consumption        
41.5 
 .8 
137.2 
7.0 
 .7 
90.5 
29.3 
~ 
29.4 
5.0 
 
16.4 
.2 
.1 
.3 
.6 
 11 ton standard coal equivalent (SCE)=7,000,000 kilocalories. Conversion
factors used are: Bituminous coal, 1.0; lignite and brown coal, 0.33; crude
oil, 1.47; natural gas, 1.33 (per thousand cubic meters); and hydroelectric
and nuclear power, 0.123 (per thousand kilowatt-hours). 
 2Derived from table 1.