The Federal Court has handed down a determination giving Indigenous people the right to trade over the township of Borroloola in a first for the Northern Territory.

Key points: NT Government and Commonwealth fought first right to trade decision

NT Government and Commonwealth fought first right to trade decision Claim group successfully argued historic trade with the Indonesian Macassans

Claim group successfully argued historic trade with the Indonesian Macassans Indigenous clans can now claim compensation for extinguishment of their rights where there are businesses and government facilities

The Northern Land Council successfully argued on behalf of the Rrumburriya Borroloola claim group, against opposition from the Northern Territory and Commonwealth Governments that Indigenous people living in the area had historically practiced commerce with Macassan traders from Indonesia.

The determination, handed down by Justice John Mansfield at a ceremony in the Gulf of Carpentaria mining service and tourism town, gives the Rrumburriya group exclusive native title rights and the right to trade over the majority of 2797 acres within the township boundary of Borroloola, on land where there is not already businesses and government infrastructure.

The successful claimants have gained non-exclusive native title, and right to trade, rights over the parts of Borroloola where there is already infrastructure.

The Rrumburriya group now have the right to negotiate compensation for the extinguishment of their rights over that land, roads, the police station and part of the air strip.

The Northern Land Council chief executive Joe Morrison praised Indigenous clan leaders assembled at the ceremony for carrying on their fight to regain their rights.

"This is a first in the Northern Territory. I congratulate you for having kept your culture against the odds," he said.

"I say against the odds, because the invasion of your lands by white settlers was the start of a long attack against your culture.

"Worse, the invasions brought horrific bloodshed and caused the deaths of many of your ancestors."

Rrumburriya group awarded same property rights as residents, business owners

The determination gives the Rrumburriya claim group the same property rights as residents and business owners, who own their land in a city like Darwin.

But, unlike rights given by the Northern Territory land rights act, the indigenous group does not have a total veto over mining projects such as fracking.

The right to trade gives the claimant group the right to use the land they have gained exclusive rights to for any commercial purpose, and the right to take and use natural resources for any purpose including commercial trade.

The natural resources in the Borroloola township area include timber such as ironwood, bloodwood and pine, ochres used in painting, and bush tucker and medicinal plants, which include a native sandalwood and white plum.

The resources also include fish, turtles and water from the McArthur river where it passes Borroloola, and the rocky creek.

Trading commenced before Australia's sovereignty: judge

The Northern Territory and Commonwealth Governments had argued against the right to trade, telling the Federal Court that resources were only taken and traded by Aboriginal people for substance living and their personal and communal use.

But Justice Mansfield rejected their argument.

"I accept that the trepang industry had commenced in the Sir Edward Pellew group of islands [off Borroloola] at least several years prior to sovereignty," he said.

"In my view it is also appropriate to accept that the provision of goods by the Macassan to Aboriginal people was not random, and that it was in return for access to their land and waters and the resources.

"The Macassans needed access to land to cook and cure the trepang taken. Processing the trepang involved the Macassans having to obtain access to stone and a supply of firewood."

Other native title determinations over towns in the Northern Territory include those in Alice springs and Timber Creek.

In Western Australia, the native title determination in favour of the Noongar people over Perth resulted in a settlement with the State Government of $1.3 billion.

Mr Morrison also paid tribute to Justice Mansfield's work on the Northern Territory's native title cases, before the judge retires at the end of this month.

"He's been a great administrator in the way he's managed the native title cases he's had to deal with in the territory," Mr Morrison said.

"He's always encouraged parties to settle rather than have a drawn out battle in the courtroom."

Well-known Borroloola singer and Yunyuwa woman Shellie Morris performed at the ceremony.