The mining company Titania ran an extensive operation at Sandbekk from 1916 until the mid 60´s. It was then decided to start the excavation elsewhere, and Sandbekk with its factory buildings, infrastructure and administrative centre was generally left to decay. 48 years later, in 2013, the company eventually demolished most of the structures, save about ten buildings out of which one of these were Velferden.
Velferden was built in 1953 to provide the miners with amenities such as a laundry, showers and wardrobes, a medical ward, a solarium and a large hall for meetings. Up until the 90s Velferden housed a wide variety of local activities such as company parties for all of the staff and their wives, weddings, confirmations, conferences, courses, a christian sunday school and a shooting club.