Petra Diamonds has agreed to pay people who were beaten and detained by officials working in its Williamson mine in Tanzania.
A total of $6m (£4.3m) will be shared among 71 workers at the mine as compensation for the violation of their rights.
In a statement the company said it “acknowledges that past incidents have taken place that regrettably resulted in the loss of life, injury and the mistreatment of illegal diggers”.
But as part of the settlement there was no admission of liability.
The investigation into the mistreatment of workers at the mine was initiated by a British charity, Rights and Accountability in Development (Raid).
The victims were represented by the British human rights law firm Leigh Day.
The settlement should enable survivors to access much-needed medical care.
Raid Executive Director Anneke Van Woudenberg said she hopes this will ensure no human rights violations take place in the future.
A local activist George Joseph Bwisige said he had been “waiting a long time” for this.
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