Gumatj Aboriginal Corp and Gove Operations, a Rio Tinto company, have signed a memorandum of understanding to carry out a feasibility study for a bauxite mine on Gumatj lands in northeast Arnhem Land.
The signing was held at the Garma festival over the weekend.
AAP reports that if the mine proves to be commercially feasible it would be owned and operated by the Gumatj Aboriginal Corporation.
Community leader Galarrwuy Yunupingu said Aboriginal people wanted to have the same opportunities to earn income from their land the way non-indigenous people do.
"You're earning money, banking money, and you see your money ... it grows, it grows," he said. "That's the way of living Aboriginal people want, too. My word, we would like to try that."
Gove Operations general manager Ryan Cavanagh said the company will support the Gumatj by developing an exploration programme to prove up the quantity and quality of potential bauxite reserves on Gumatj land.
"This is an important step for the Gumatj, to own and operate a bauxite mine on their country," Mr Cavanagh said.