When occupied by the workers, it was the third largest settlement in the archipelago (after Longyearbyen and Barentsburg) but there were no permanent inhabitants.

Around 300 workers living in Longyearbyen commuted to Sveagruva for work on a daily or weekly basis.

[3] There is no road to Longyearbyen or any other settlements, so travel is done by air from Svea Airport and coal transport by ship from a port 5 kilometres (3.1 mi) southwest.

In the 1990s, the town nearly vanished, as mines in Longyearbyen proved more productive and accessible.

In 2005, a mine fire erupted, lasting uninterrupted for more than five weeks, and causing 700 million Norwegian kroner worth of damage.