An Aboriginal group is seeking A$1.8 billion ($1.1 billion) in compensation from Western Australia, stressing that the state allowed Fortescue to mine iron ore without securing a land use agreement, according to court filings on Wednesday.

The Yindjibarndi Ngurra Aboriginal Corporation (YNAC) argues that operations at the Solomon mining hub have caused significant damage to their land and culture. Their charges include A$1 billion for cultural damage and A$678 million for economic loss, as outlined in Federal Court of Australia filings.

This is expected to be a landmark case, not only due to the scale of the compensation sought but also for its potential to set a precedent that could pave the way for similar claims over past damages.

Dive deeper

YNAC is suing the state government for authorizing the mining, with the expectation that the state will then seek to recover losses by suing Fortescue, the world’s fourth-largest iron ore miner.

"Fortescue accepts that the Yindjibarndi People are entitled to compensation, however the parties disagree on the amount of that compensation," Fortescue stated in a comment to Reuters.

In its final court submission, the state government argued that total compensation for economic loss should be A$128,114, with interest of A$92,957. For cultural loss, the state proposed a range of A$5 million to A$10 million, saying this would "appropriately reflect what the Australian community would accept as fair, reasonable or just."

The court is hearing arguments this week, though a decision is not expected until late this year.

Driving the news

Western Australia supplies about half of the world’s seaborne iron ore, a critical ingredient for steelmaking.

The case follows the 2020 destruction of the Juukan Gorge rock shelters by Rio Tinto, which provoked global outrage and led to the resignation of the company’s CEO and chairman.

According to expert testimonies in court filings, the Solomon mine has caused "existential damage" to the Yindjibarndi people by destroying cultural and archaeological sites, including more than 285 significant sites and six Dreaming or creation story tracks. These tracks are central to Australia's understanding of human settlement in its arid regions, dating back 40,000 to 45,000 years.

"The significant harm to country, people and Dreamings remains ongoing," the report stated.

The Yindjibarndi people secured exclusive native title rights in 2017 over land that includes the Solomon mining hub, a mineral-rich project that began in 2012 and can produce up to 80 million tonnes of iron ore annually. Native title is an Australian legal doctrine recognizing Indigenous rights to specific lands.

Fortescue's founder, Andrew Forrest, is among Australia's wealthiest individuals. The company reported a net profit of $5.7 billion in the last financial year.

Read next: Australian PM calls for urgent reforms in indigenous welfare