The lowland and Miseryfjellet are built up of coal-bearing sandstones. At Tunheim in the northeastern part of the island is Devonian coal seams have been worked. The occurrence of coal has been known since 1609. The seams were investigated by German mining engineers, including Theodor Lerner, a German, who made claims in 1898. The German Fishery Association also made claims the same year.

I/S Bjøernøens kulkompani. In 1915 the island was claimed by a syndicate of Stavanger, Norway, which formed this company and began coal mining on a small scale the following year. Arne Haabeth and family, of Stavanger, along with K. Sandve all played an important part in the starting and development of coal mining on Bjørnøya. A permanent settlement did not appear until coal mining began in 1916.

Bjørnøen A.S. In 1918 Bjørnøen A.S. became the new name of the above reorganized company. Tunheim was the mining camp with about 25 houses on the northeastern coast of Bjørnøya, built in 1916, named for Karl Tunheim, forman at the works in 1916. The inhabitants numbered as many as 250. Austervåg (Østervaag), is a nay north of Tunheim, where coal operations and loading plant, or silo, stood at the time the mines were in operation. Coal mining at Tunheim was from 1916 to 1925 and produced 116,093 metric tons. Mining continued until 1925, when the works were shut down. Coal was not considered workable when coal prices were low.

Postmark ØSTERVAAG-BJØRNØY was announced being used from July 20, 1918 and was active until the office closed in 1925.

Bear Island Radio, wireless station, came into operation in 1919. The Norwegian government maintains a meteorological station that was established in 1923, important for weather forecasting. These are most important for communications and information for the fishing fleet and other shipping.

There was some activity up to 1931. Bjørnøen A.S. of Stavanger from 1918 until the seat of the company was transferred to Oslo on Oct. 28, 1935.