The 10th Duke of St Albans was responsible for the creation of the Bestwood Coal and Iron Company with Lancashire entrepreneur John Lancaster. Two vertical shafts were sunk, in 1871 and 1872, as well as a drift mine. Both shafts were sunk to over 400 yards. Coal production then began in 1876.

In 1876, 64 houses were built for the workforce of the Bestwood Coal and Iron Company, and were small, red brick terraced houses. The houses were built along Park Road, formerly known as Bestwood Colliery Road. Bestwood Village as we know it today is termed a "model village", purpose built for the mine folk - it never existed until the mine arrived. After the houses were built came the construction of the general offices, the school, the iron works, St Marks church and the Institute.

The local workforce all travelled to work by foot each day; the ones from Arnold via Colliers Pad, over the "Tin Bridge" from Hucknall, and by Bestwood Road from Bulwell. They often took a shortcut over the mineral railway lines, but if caught, they were fined by the company chiefs as it was a dangerous route. Most of the workforce came from the North West of England (mainly Lancashire). In 1884 the company employed 720 men (550 underground), around 2000 in its heyday, amd approximately 1600 at its closure in 1967. The difficult geological conditions meant that the coal became too difficult to mine, and so too uneconomical, leading to its closure.

The Winding Engine House of the old colliery still stands today next to the mine shaft. This impressive red brick building, with a slate roof, is quite unique as it still holds one of the only steam driven winding engines left that is in its original position. It is currently being restored by volunteers and it is hoped that it can be made open to the public in the future.

The ironworks were part of the Bestwood Coal and Iron Company, and it was situated next door to the pit. They opened in 1881 and closed in 1928, due to unrest among the workforce. There were four furnaces in total. The flames from the furnace were so bright that they illuminated the local football area behind the colliery offices, and the children knew that they could play until midnight in this light, before it would become too dull to see.