The Bishopric had only been founded in 1007 and to mark his coronation on 10 February 1014 Henry II, Holy Roman Emperor had granted it various possessions in Carinthia, including in the area of what is now the market town of Arnoldstein.
Abbot Christoph allowed Jakob Fugger and his brothers to build a metal-separating works and a fortress on abbey lands in 1495, which became the foundation for the Fuggerau complex.
[2] Abbot Friedrich complained in 1507 that the abbey had fallen into dilapidation and poverty and during the Reformation it was on the verge of dissolution, with its reputation weakened by the taxes on the princes to fund the war against the Ottoman Empire, its quarrels with nobles and subjects and its neglect of its pastoral duties.
In 1570 abbot Petrus entered into a bond for 2500 guilders in installments to buy back the Fuggerau with all its lands and rights, since it had declined as a mining operation but still needed to be kept out of the hands of the neighbouring nobles, who might well go over to Protestantism at any moment.
After the free election of abbot Daniel in 1630 the abbey began to flourish once again until a major fire in October 1642, in the wake of which its funds were invested in buildings and equipment.
A court decree thus abolished it on 24 November 1783, with abbot Otto von Größing and 18 priests there allowed to choose becoming parish clergy or to switch to another monastery.
Another fire on 16 August 1883 destroyed the buildings' wooden roofs and ceilings but the administration was unwilling to raise funds to repair them and so they were left to fall into ruin.