The deal would compensate victims' families, pay fines and improve underground safety but would not prevent the future prosecutions of individuals on criminal charges as a result of the blast, US Attorney Booth Goodwin is reported as saying by AAP.
"No individuals are off the hook," Goodwin reportedly said.
Alpha Natural Resources, which purchased Upper Big Branch’s former owner Massey Energy this year, would not be charged if it abided by the terms of the settlement, he reportedly said.
The agreement comprises $46.5 million in criminal restitution to the miners' families, $128 million to fund advanced mine safety upgrades, research and training, and $35 million in penalties for federal mine safety violations.
The $46.5 million in restitution will mean that the families of the 29 miners and two co-workers who survived the explosion would each receive $1.5 million.
Alpha is also liable for $35 million for citations against Massey's other former mines.
Goodwin described the settlement as a "non-prosecution agreement" and said it was the largest resolution of a criminal investigation into a US mine disaster.
His office is continuing to probe the disaster and Alpha is also conducting an internal investigation.
The blast was caused by a combination of methane gas, coal dust and broken equipment in the underground mine, according to investigators.
