This follows an investigation by the regulator into the serious safety incident at the BHP-owned mine in August 2017.
Chief investigator Steve Orr said the investigation found a worker suffered serious burns to his face, neck, torso and arms as the result of a diesel fire that started while he was refuelling a tyre handler at the mine's heavy vehicle refuelling facility.
"This is the highest value mining work health and safety undertaking accepted in NSW to date," he said.
"It will deliver significant engineering improvements at the mine, industry training and vital monetary support for the region's Rural Fire Service.
"The regulator accepted the enforceable undertaking as it will deliver tangible benefits to the workforce and community that could not be achieved through prosecution action alone."
Orr said lessons from the investigation had been shared widely with the mining industry using digital animations to demonstrate exactly how the incident happened as a prevention tool.
"These animations are the first of their kind to be developed by a work health and safety regulator anywhere in Australia and are aimed at helping the industry address safety issue," he said.
The regulator has also started prosecution proceedings against Otraco International for an alleged breach of the Work Health and Safely Act 2011 arising from its investigation into the incident.
The matter has been set down for first mention in the NSW District Court on September 16.
As the matter against Otraco is before the court, the regulator is unable to make further comment.