Federal Court Orders Fortescue to Pay Record $150.1 Million in Native Title Compensation
The Federal Court of Australia has ordered Fortescue Metals Group to pay A$150.1 million in compensation to the Yindjibarndi Ngurra Aboriginal Corporation (YNAC) for mining on native title land without a negotiated agreement and for the destruction of cultural heritage sites. The ruling, delivered by Justice Stephen Burley, represents the largest native title compensation payout in Australian history.
"All was duly approved under government processes. However, none was done with the approval of YNAC." — Justice Stephen Burley
The Ruling
Justice Burley awarded the compensation in two components:
- Cultural loss: A$150 million for the destruction of approximately 140 culturally significant sites and damage to spiritual heritage, including song lines.
- Economic loss: Approximately A$100,000, calculated based on the freehold value of approximately 135 square kilometers of land at the Solomon Hub, rather than on the mineral value extracted.
The Yindjibarndi people had sought A$1.8 billion in compensation, including A$1 billion for cultural damage, A$678 million for economic loss, A$34.85 million for destruction of sites, and A$112.14 million for social disharmony. Fortescue and the Western Australian government argued the claim should be capped between A$5 million and A$10.1 million.
Background of the Dispute
The Yindjibarndi people first filed a native title claim in 2003. In 2017, they were granted exclusive native title rights over approximately 2,700 square kilometers in Western Australia's Pilbara region, including the area where Fortescue's Solomon Hub mines operate.
Fortescue began mining at the Solomon Hub in 2013, before the native title determination was finalized, and without securing an agreement with YNAC. Approximately 75% of the mine's 400 square kilometer footprint lies within the Yindjibarndi native title area. The mines have generated an estimated A$80 billion in revenue since construction.
The compensation case was lodged in 2022 following an unsuccessful appeal by Fortescue against the 2017 native title determination.
Court Findings
Justice Burley found that significant damage was done to Yindjibarndi cultural heritage. According to court records, 240 heritage sites were relocated and 140 cultural sites were "completely destroyed." The court heard testimony from elders describing their "Nurra, soul and spirit [were] destroyed."
"Nurra, soul and spirit [were] destroyed." — Yindjibarndi elders, as recorded in court testimony
The full judgment has been suppressed to protect commercially sensitive information.
Legal Framework
Under the Western Australian Mining Act, compensation liability passes to the tenement holder when the state government approves a mining license. Justice Burley affirmed this provision, absolving the state from financial responsibility.
This is the third time the Federal Court has decided a native title compensation claim, following a 2019 High Court award of A$2.5 million to the Ngaliwurru and Nungali peoples and a February 2025 award of A$54 million to three other groups.
Reactions
Michael Woodley, CEO of YNAC, stated that an appeal appears likely and described the payout as falling short of expectations.
Fortescue CEO Dino Otranto said the company looks forward to focusing on long-term partnerships. A Fortescue spokesperson stated the company and Andrew Forrest believe the Yindjibarndi people are entitled to compensation.
Western Australian Premier Roger Cook said the government would examine the judgment before commenting.
Kado Muir, chair of the National Native Title Council, said the formula used to calculate economic loss is flawed and should be appealed.
Veteran native title lawyer Greg McIntyre described the decision as a watershed moment.
Resources journalist Paul Cleary called the economic compensation amount "extraordinary and inherently unfair."
Related Context
YNAC signed a A$300 million solar farm deal with Rio Tinto days before the compensation ruling. The Yindjibarndi people are also pursuing housing expansion and community development projects.
The Yindjibarndi previously refused a royalty offer from Fortescue. The miner then reached an agreement with a breakaway group, Wirlu-Murra Yindjibarndi Aboriginal Corporation, after reportedly paying individuals A$500 each to attend a meeting that voted in favor of the offer in 2010. YNAC argued that the community suffered harm from the rupturing of community ties following Fortescue's funding of this breakaway group.
YNAC and Fortescue are scheduled to reconvene on June 22.