To develop coal seams in the area the Sheffield Coal Company opened a new colliery between Swallownest and Beighton, at that time on the borders of Rotherham Rural District and Derbyshire but now just with Rotherham. The company, which became part of the United Steel Companies in 1937, already owned other collieries in the area, particularly the Birley Collieries and that at Aston Common, known as North Staveley Colliery.
Brookhouse was not opened until 1929 and linked with its neighbours underground. The site also included coke ovens and by-products plants supplying metallurgical coke to the iron and steel industry, particularly those in Scunthorpe.