Hidden inside the cluster of islands, famous for its polar bears and dog sledding adventures, is a potentially lucrative coal mine attracting the attention of big businesses the world over.

The islands, situated halfway between the Norwegian mainland and the North Pole, has had a running history with coal mining since its settlement in the 20th century.

The 217sq.km of land for sale is believed to hold up to 25 million tonnes of coal.

The Austre Adventfjord property is owned by the Horn family of industrialists but a recent feud between the family and the mining company with rights to the land has spurred the sale, according to the Norwegian VG.

No figures have been released for the potential value of the land.

International financial institutions were reported to have been hired to help find a buyer, sparking controversy about whether parts of the island should be sold to foreign investors.

It is believed that firms from many nations including Russia, the US and China may want to snap it up.

While no company has expressed an interest yet, there is certainly enthusiasm regarding the area’s potential.

The US Geological Survey estimated that 30% of the world’s undiscovered natural gas reserves and 13% of its undiscovered oil were in the Arctic.

Global warming is understood to have awoken the area’s energy potential.

Until recently the ice was too thick to even consider exploration but as the ice has thawed, companies are now vying for uncovered assets and potential trade routes.

China is looking to be the most likely bidder as it is already the biggest mining investor in Greenland.

Last year China was granted observer status by the Arctic Council, which coordinates policy for the region.

The state-owned Cosco groups also took advantage of the newly established trade routes when it sent the first ever container ship from China to Europe via the Arctic, shaving 12-18 days off of its travel time.

Political debate in Arctic nations over environmental impacts is also holding up much of the exploration of the natural resources.

Norway’s Green Party has pledged to preserve the wilderness of Svalbard and at a party congress this week it proposed closing down all the coal mines on the archipelago.