The river Sil flows through the city. Ponferrada is the last larger town on the pilgrimage route to Santiago de Compostela. In Roman times, gold was mined in the vicinity of Ponferrada, see Las Médulas. In the Middle Ages, Ponferrada was for a short time the Spanish headquarters of the Knights Templar, who owned a large castle in the town. In later times (19th century/first half of the 20th century), coal was extracted, among other things.