Updated April 06, 2016 19:15:49

Photo: The land on the Cox Peninsula cost $32 million to clean up. (ABC News: Tristan Hooft)

One of Australia's longest-running land claims has been resolved, with land to be handed back to the recognised traditional owners on the Cox Peninsula, across the harbour from Darwin.

The last step in completing the claim required the Northern Territory Government to sign off on compensation for excess fishing near the land under the Blue Mud Bay High Court decision, announced this afternoon by the Northern Land Council.

The Kenbi land claim was first lodged in 1979, and went on to be the subject of two extensive hearings, three Federal Court reviews and two High Court appeals.

The first successful stage of the claim was in 2000, when Commissioner Peter Gray recommended the area be declared Aboriginal land.

At a joint press conference this afternoon with the Northern Land Council, Northern Territory Chief Minister Adam Giles said a final settlement package between the council, traditional owners and the Federal Government had finally been agreed upon.

"Part of the settlement that has been offered is historic in nature, a settlement of some 52,000 hectares of land to land trust land, and 13,000 hectares of land to freehold land with an opportunity for what I would call Indigenous development land," Mr Giles said.

"That freehold land will be administered through the Larrakia Nation Development Corporation.

"The settlement package also includes access for all Territorians to what is commonly referred to as the low to high water tide mark, ensuring that all Territorians have access to camping and fishing opportunities."

Chief executive of the Northern Land Council Joe Morrison described the day as momentous, adding that the Kenbi land claim had hung over the land like a dark cloud.

"Today, that cloud has finally begun to dissipate," he said.

Final terms of agreement 'innovative'

The claim's long history has divided more than 2,000 Aboriginal people from several family groups who wanted access to the land.

Many Larrakia people were unable to legally prove their connection to the land, and left without any major rights to the land.

Mr Morrison said although traditional owners had already long-since consented to many of the terms of settlement, two issues had remained outstanding until today: a compensation package to allow public fishing access to the intertidal zone and some beaches of the Cox Peninsula, and the remediation of parcels of contaminated land.

Mr Morrison also sought to acknowledge that the final settlement had not had the support of all Larrakia families.

"I want this day to be an occasion for celebration, in spite of the reservations held by some of the Larrakia people," he said.

Photo: The Kenbi land claim will allow public access to parts of the Cox Peninsula. (ABC News: Tristan Hooft)

Indigenous Affairs Minister Nigel Scullion said the result had been "innovative" and one that should be closely looked at by other groups around Australia.

"Ten years ago I never thought part of the settlement would be a voluntary extinguishment of native title, I wouldn't have thought that free-holding of much of that land to enable economic development for the traditional owners would have been available," Mr Scullion said.

Fight to have traditional owners recognised

The first land claim failed in 1991 on the basis the application did not have at least two patrilineal descendents - people who could trace their clan membership through men, who had primary spiritual responsibility for sites on the land.

But in 2000, the land claim was successful in its second run because the Northern Land Council strategically divided the claimants so only those who descended patrinileally from ancestor Tommy Lyons would be officially recognised.

Mr Lyons' granddaughter Raelene Singh was the most senior surviving member and as a result, her immediate family and children were the main claimants to the land.

Justice Peter Gray found six members of the Singh family were "traditional Aboriginal owners" in relation to most of the land claimed.

He subsequently recommended the area be declared Aboriginal land and described the claim as "the most complex traditional land claim in the history of the Land Rights Act."

Justice Gray emphasised the land would be for the benefit of all 1,600 Larrakia people who had traditional interests in the land, not just the six persons who were traditional Aboriginal owners.

The Northern Territory Government had been against the Kenbi land claim in fear it would hinder development on prime real estate.

In answer to those fears, the Larrakia said it was not against development.

"There is no threat to development from the confirmation of our land rights. Larrakia people have always made it very clear that we are not anti-development on our land, provided our rights are recognised and protected," Larrakia spokesman Bill Risk said in 2001.

Photo: A Government report said pollution on the Cox Peninsula could pose a significant risk to human health. (ABC News: Nadia Daly)

In 2011, the Commonwealth, Northern Territory Government and the NLC signed an agreement which officially transferred some of the land to the Larrakia Development Corporation to be developed.

The rest of it was transferred to an Aboriginal land trust that was later established under Territory legislation.

But the official land handback could not occur until the Federal Government paid nearly $32 million to clean up asbestos and other chemicals on some of the land last year.

The area was also used as a dump for decades, including asbestos-ridden building debris from 1974's Cyclone Tracy being offloaded there.

Topics: indigenous-aboriginal-and-torres-strait-islander, land-rights, darwin-0800

First posted April 06, 2016 15:31:30