Radio propagation in confined spaces is consequent upon reflections by the boundaries. In such cases, the relative position and polarization of antennas becomes important. This paper investigates the effect of antenna position and polarization on ultra-wideband radio propagation in underground mines and tunnels. Analysis is based on channel measurements, over 2.4 to 4 GHz frequency band, in three tunnels of varying cross-sectional dimensions and lengths. Effects of mounting antennas on ceiling versus walls and horizontal versus vertical polarization are compared in terms of path loss and time dispersion. Results show that average path loss is more sensitive to antenna position and polarization, than is time dispersion. The effect of polarization is found to be dependent upon antenna position. Horizontal polarization results in less average path loss when the antennas are mounted close to the ceiling, whereas vertical polarization results in less average loss when mounted close to a side wall. It is demonstrated that carefully considering antenna position and polarization can result in more efficient and cost-effective deployment of UWB systems in underground environments.