Ny-Ålesund was founded in 1917 by Kings Bay Kull Compagnie Ltd, in connection with the mining operations there. There was a break in 1929 after several small accidents, but operations were resumed again after the war when the demand for coal was great. In 1962 there was a large mine explosion which cost 21 lives, and the disaster led to complete cessation of mining operations in 1963. The Kings Bay Company was taken over by the state in 1931, and it still owns and maintains the buildings and quay installations. However, SNSK has taken over the claims with their rights and obligations.

A new form of activity was started in 1968, when Norsk Polarinstitutt (NPI) (The Norwegian Polar Research Institute) set up its research station in Svalbard. Researchers from domestic and at times foreign institutions can obtain facilities here to carry out their own research programmes in cooperation with NPI. Ny-Ålesund has post connection, and directr telephone communication by satellite, and an 800 m long airstrip.