The deal was signed in Beijing with three former workers representing the company's more than 3,000 Chinese victims of forced labor, Mitsubishi Materials said in a statement.
The victims were among about 40,000 Chinese brought to Japan in the early 1940s as forced laborers to make up for a domestic labor shortage. Many died due to violence and malnutrition amid harsh treatment by the Japanese.
Under the settlement, Mitsubishi Materials will pay 100,000 yuan (USD 15,000) to each of the Chinese victims and their families. The victims were forced to work at 10 coal mines operated by Mitsubishi Mining Corp., what Mitsubishi Materials was known as at the time.
At the signing ceremony in Beijing, the company "expressed its sincere apologies regarding its historical responsibility to the former laborers and the apologies were accepted by the three former laborers," the company's statement said.
More From This Section
Mitsubishi Materials also said it would construct memorials at the sites where the company's mines were located and organize memorial ceremonies.
The settlement comes two years after several groups representing the victims and their families filed a compensation lawsuit against Mitsubishi Materials. The sides had since negotiated settlements, though one of the groups, representing 37 plaintiffs, has rejected the settlement, according to Japan's Kyodo News agency.
Japan's Foreign Ministry acknowledged the country's wartime use of Chinese forced laborers after wartime documents were found in the early 1990s.