Kakadu Traditional Owners have welcomed the decision by the Northern Territory government to issue a two-year order to prevent mining and exploration in the Jabiluka area.

While the decision on whether to grant the leaseholders a ten-year extension on the site remains pending, the NT government on Wednesday declared special reserve status over the Jabiluka area, which lies within Kakadu National Park.

The reservation, under the NT Minerals Titles Act, was gazetted on Wednesday, and while in force, it will also prevent Energy Resources Australia (ERA) from applying for a grant on any mineral title on the land in question.

The site, which has been part of a 25-year-long battle by the Mirarr people, is home to a large uranium deposit. The Mirarr people have long opposed mining in the area, with protests in the late 1990s seeing more than 5,000 people travel to Kakadu to prevent uranium mining at Jabiluka.

The reservation order will be reviewed every two years if the lease application remains unresolved and will take effect on August 11 — the day the existing lease expires and two weeks before the upcoming NT election.

The Gundjeihmi Aboriginal Corporation applauded the decision by NT mining minister Mark Monaghan for creating a "reserved land area over Jabiluka".

"This means from today the land is protected from any new mine proposals in the same way that no mining can happen within Nitmiluk National Park (Katherine Gorge and Edith Falls)," their statement read.

Traditional Owner Yvonne Margarula said Chief Minister Eva Lawler had "kept her word".

"Eva Lawler understands the Northern Territory, she respects Bininj culture," Ms Margarula said.

"She and her Mines Minister have done the right thing for Kakadu National Park.

"This announcement gives us certainty about the future when the mining lease ends."

Earlier this year, Rio Tinto - who own 86.3 per cent of ERA - took control of the rehabilitation project at the nearby former Ranger uranium mine, after ERA ceased operations there in 2021.

The rehabilitation cost is expected to "materially exceed" $2.2 billion.

In March, ERA applied for a ten-year renewal of their mining lease, drawing the ire of Traditional Owners, with GAC arguing this was despite ERA "being out of money and neck deep in rising rehabilitation costs at the adjacent Ranger mine".

Mirarr man and next generation Traditional Owner, Corben Mudjandi, said they met Ms Lawler and Mr Monaghan to emphasise this point.

"We doubt whether such an old mining lease can be extended. Mirarr have always said we will never agree to mining at Jabiluka. This is sacred country and needs protection," Mr Mudjandi said.

An ERA spokesperson told National Indigenous Times the NT Government had advised them the decison would have "no effect on their consideration of the extension of the mining lease at Jabiluka," arguing it was an "administrative measure put in place when mining leases are due to expire."

"The extension of ERA's mining lease at Jabiluka is the best mechanism to protect the cultural heritage at Jabiluka," the spokesperson said.

"Under ERA's agreement with the Mirarr Traditional Owners, which has been in place for almost 20 years, Jabiluka cannot be developed without their consent. This right of veto expires if the lease is not renewed."

Rio Tinto have no plans to mine Jabiluka, with Chair Dominic Barton telling the AGM last month the company "supports the Mirarr people in their strong opposition to the development of Jabiluka and our focus is only on rehabilitation".

The decision, which was made on World Environment Day, was also welcomed by environmental groups, with Australian Conservation Foundation nuclear free campaigner Dave Sweeney saying the decision was "particularly sweet news and an important step towards a lasting resolution to this long running and major concern."

"Above all it is recognition of the sustained and unwavering efforts of the Mirarr Traditional Owners to protect their Country and culture from the impacts of uranium mining," Mr Sweeney said.

He said this was not the final chapter and urged the Commonwealth to "swiftly" provide lasting protection to the area.

"It is imperative now that the intent expressed in the special reserve declaration is matched in reality with no extension of the current Jabiluka mining lease."

GAC agreed, noting the decision by the NT government "paves the way for a decision by the Commonwealth to incorporate this stunning cultural landscape within the Kakadu World Heritage Area once the mining lease expires."