Yindjibarndi Ngurra Aboriginal Corporation claimed Fortescue Metals Group, which was founded by billionaire Andrew Forrest, should pay $1.8 billion after mining without free, prior and informed consent.
It took its case to the Federal Court, which on Tuesday handed down its judgment in Perth.
Justice Stephen Burley told a packed courtroom that Yindjibarndi's economic loss was $100,000 and its cultural loss was $150 million, as he summarised the landmark case.
"The evidence supports the conclusion that significant damage has been done to Yindjibarndi song lines and other areas of cultural heritage," he said.
Fortescue started mining at the hub in the Pilbara in 2013, but its relationship with Yindjibarndi had soured years earlier over the alleged destruction of sacred sites during the mine construction.
Yindjibarndi wanted $1 billion for cultural damage, $678 million for economic loss, $34.85 million for the destruction of sites, and $112.14 million for the impact of social disharmony allegedly caused by Fortescue.
The state and Fortescue said the total claim should be between $5 million and $10.1 million, and any economic loss could not exceed the value of the land.
Yindjibarndi said Fortescue has earned $80 billion from the mine and the WA government has pocketed $10 billion in royalties.
Yindjibarndi previously refused Fortescue's royalty offer and the miner did a deal with breakaway group Wirlu-Murra Yindjibarndi Aboriginal Corporation after paying people $500 each to attend a meeting that voted in favour of the offer in 2010.
Lawyers for Yindjibarndi argued during the trial that compensation should take into account the amount the native title holders would have been able to negotiate with Fortescue.
More than 250 sites have been damaged or destroyed, according to Yindjibarndi's closing submissions.
The Yindjibarndi people were granted exclusive native title over the compensation claim area in 2017.
About 75 per cent of the Solomon Mine Hub's 400 square kilometre footprint, an area the size of Darwin, extends across the Yindjibarndi native title determination area.
The court battle initiated by Yindjibarndi started in 2022.
Fortescue has previously said the company was committed to seeing the matter settled and was prepared to pay compensation.
It has also denied causing any disharmony among the Yindjibarndi people.
More recently, the company said it had strong relationships with the First Nations people of the Pilbara region.
"Our dedicated heritage, native title and community teams work closely with Traditional Custodians to ensure cultural heritage is managed sustainably and responsibly," a spokesman said in a statement last week.
Paul Cleary, whose book Title Fight focused on the dispute between Yindjibarndi and Fortescue, said the decision was likely to have far-reaching implications for the entire system of agreement making between developers and Indigenous communities.
"The land use provisions of the Native Title Act have generated over a thousand beneficial agreements for communities around Australia," he said.
"Fortescue's decision to mine Yindjibarndi country without paying compensation, and while generating more than $60 billion in revenue, threatens to bring this system crashing down."
