Because of its location the castle could have been the administrative base mentioned in the records as Gurtstein mitsamt dem Walde and been used to support the royal forestry industry and medieval iron ore extraction, smelting and processing in the Steinach valley, which was later moved to Weidenberg. The charcoal needed for the production of iron was produced in the densely forested Fichtel Mountains in charcoal piles. A so-called bloomery to extract pig iron was found in the area of the present day Sophienthal. The processing of this iron was carried out in iron hammer mills on the Warme Steinach.