Earlier, the 4,365 miners filed a law suit against the mining companies claiming that they were infected with dust-related lung diseases, silicosis and silico-tuberculosis, due to working in unsafe conditions in the mines.
Leigh Day, one of the law firms that represented the miners, said that the settlement, however, is separate from a class-action lawsuit which is currently under evaluation at Johannesburg’s High Court.
Anglo American South Africa executive head Andile Sangqu said: "Our collective objective is to significantly improve the access and quality of care available to South Africans as well as ensuring a healthy and safe working environment for all our employees."
The firms will provide the compensation through a trust, which will then pay affected mineworkers based on the severity of their condition and their age, reported Bloomberg.
Leigh Day partner Richard Meeran said: "This settlement is a triumph for justice and accountability. It will bring much needed financial relief to the victims and their families.
"This settlement scheme provides a model and, we hope, the necessary impetus for an industry-wide settlement for all gold mining silicosis victims."
Anglo American and AngloGold said that the settlement deal with no admission of liability while the terms of the agreement remain undisclosed.
