3. First Nations engagement and benefit sharing

Why action is needed

The Australian Government acknowledges and respects the enduring relationship First Nations peoples and communities have with Country including Land, Water, Sea and Air Country. First Nations peoples are custodians and stewards of Country. Their cultural authority, Traditional Knowledge and continuing obligations to care for Country are central to sustainable land, water and environmental management. The government recognises the significance of First Nations cultural heritage, knowledge and practices.

Critical minerals projects depend on land, water, infrastructure and community trust. They will only succeed long term if they respect First Nations rights, interests and responsibilities to Country. Valuing First Nations land and water rights, cultural heritage and Traditional Knowledge, and engaging early and genuinely with First Nations communities, is essential to the sustainable growth of Australia’s critical minerals sector.

Across Australia, First Nations peoples and communities play a central role in caring for the lands and waters that support resource development. More than 60% of Australian resources projects, including exploration and extraction, operate on land covered by a native title claim or determination (Productivity Commission 2020). In the Northern Territory in particular, approximately 50% of the landmass is freehold Aboriginal land where Traditional Owners have the right to refuse consent or ‘veto’ any land access and land use proposals. 

First Nations interests extend beyond native title and legislated land rights. Around 25% of Australia’s landmass is under some form of Indigenous management or co‑management (Department of Agriculture, Fisheries and Forestry, 2024). These interests reflect cultural and spiritual obligations to care for Country, regardless of land tenure.

The growth of Australia’s critical minerals sector creates an opportunity to advance First Nations economic self‑determination. This requires engaging with First Nations peoples as decision‑makers, partners and potential co‑investors from the earliest stages of project development. The Australian Government’s First Nations Economic Partnership reflects this priority. 

Buyers, investors and partners are increasingly interested in whether projects have durable community support and benefit sharing arrangements. Governments and industry share responsibility for meaningful engagement, agreement making, partnership and benefit sharing with First Nations communities. While royalties, employment and procurement remain important, they are not enough. Economic participation should include equity, co‑ownership, commercial partnerships, and enable First Nations‑led enterprises to capture value across the supply chain. This can build enduring economic capability, strengthen community‑controlled development and support intergenerational prosperity.

Genuine partnerships improve project outcomes. Meaningful and culturally safe engagement with Traditional Owners is best practice and essential to achieving outcomes that reflect community priorities, cultural authority and long‑term aspirations. Early, culturally safe engagement can support meaningful negotiations under land rights legislation and the Native Title Act 1993 (Native Title Act). Partnership can reduce disputes, improve project design and strengthen investor confidence. But engagement must not be treated as a compliance step. It must be sustained through transparent decision‑making, clear obligations and accountability for agreed outcomes. 

Australia’s critical minerals sector will be stronger if First Nations peoples share in its decisions, ownership and benefits. Respect for Country, cultural authority and economic self‑determination is not separate from project success. It is central to it. This can improve outcomes for First Nations communities and support meaningful progress against targets and socioeconomic outcomes under the National Agreement on Closing the Gap.

Areas of action to support First Nations engagement and benefit sharing

Economic empowerment and benefit sharing

The Australian Government will continue to partner with First Nations peoples, communities, organisations and enterprises to drive economic empowerment as a key priority. The government has continued to pursue practical reforms through Closing the Gap and through the First Nations Economic Partnership. This approach reflects the principle that First Nations peoples should be empowered to determine, drive and own the desired outcomes, alongside government. 

The government will support the growth of a critical minerals sector that creates opportunities for First Nations peoples and communities to pursue their self‑determined goals. We will do this by continuing to encourage genuine partnership and early engagement by proponents that recognises Traditional Owners as equal decision‑makers and partners. For example, the NAIF mandates all funded projects to have a strategy that sets out objectives for First Nations participation, procurement and employment that considers the needs of the First Nations population in the region of the proposed project. The resources sector is already partnering with communities through jobs with local training and internships, local business and procurement opportunities, community shares and equity stakes in projects, and community grants. 

These opportunities depend on strong, early and ongoing partnerships and engagement between industry, governments and First Nations peoples, communities and their representative organisations. Meaningful engagement can support Traditional Owners to capture a fair share of project benefits. This can contribute to improved employment, income, asset building and their self‑determined community goals.

The government will use the First Nations Economic Partnership to advance greater economic agency for First Nations peoples, communities and organisations. The partnership will also support productivity and economic growth by exploring opportunities to leverage land and Native Title rights and interests, boost skills and education, support job creation and back First Nations businesses. The government is investing $16.9 million over 5 years (2025 to 2030) through the partnership. 

The partnership will undertake a consultation process in the second half of 2026 to develop a First Nations Economic Framework which will set out the partnership’s comprehensive vision of First Nations economic empowerment. This will ensure the diverse knowledge, skills and lived experience of First Nations peoples inform economic reforms and help deliver meaningful and lasting outcomes.

From July 2026, the government has committed an additional $75 million through a new program to support the economic empowerment of Prescribed Bodies Corporate (PBCs). The increased funding will support PBCs to carry out legislative functions, engage with government and industry, and leverage economic opportunities.

The Future Made in Australia Community Benefit Principles include collaborative engagement with and achieving positive outcomes for local communities, including First Nations communities and supporting First Nations communities and Traditional Owners to participate in and share the benefits of the transition to net zero.

Cultural heritage and environmental protection reforms

Consent, cultural heritage protection, environmental stewardship, and the recognition of Native Title and other land rights and interests are central to responsible critical minerals development. 

We will encourage partnership and engagement approaches that: 

• demonstrate cultural capability
• build and maintain trust and respect
• occur early to enable First Nations communities to influence project design and long‑term outcomes
• provide sufficient time, resourcing and expertise that support free, prior and informed consent and allow Traditional Owners to assess proposals and negotiate on equal footing
• prioritise genuine partnerships and benefit‑sharing across all stages of the mining lifecycle.

We are pursuing an ambitious reform agenda to strengthen cultural heritage and environmental protection legislation through reforms to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Under the reforms, we are developing a National Environmental Standard for First Nations Engagement and Participation in Decision‑Making. The standard is being developed through a co‑design process with First Nations peoples. It will set clearer, nationally consistent expectations for early and meaningful engagement with First Nations peoples. It will also provide greater certainty for proponents on engagement requirements under the EPBC Act.