The land council representing the Martu native title area terminated an agreement with potash mining companies, Holocene and Reward Minerals, on Tuesday following what it described as a "serious breach".

The Kumpupintil Indigenous Land Use Agreement (ILUA) between Jamukurnu-Yapalikurnu Aboriginal Corporation, Reward Minerals Ltd and Holocene Pty Ltd (Reward's subsidiary) was related to the Kumpupintil potash project (formerly known as the Lake Disappointment potash project).

The ILUA contains a key clause that requires JYAC be given 60 days' prior written notice of the company's intention to voluntarily surrender or relinquish its project titles, giving JYAC the option to acquire mining tenements over the location on behalf of Martu.

Jamukurnu-Yapalikurnu Aboriginal Corporation alleges Holocene surrendered the project titles on 22 July this year without informing the land council as required.

JYAC said just 38 minutes after they were surrendered, another company lodged applications for a series of mining tenements in that same location, depriving the land council of the opportunity to consider applying for them on behalf of Martu traditional owners.

JYAC interim chief executive, Rewi Lyall, said: "In response to this serious breach, we have written to Reward and Holocene to inform them that the Kumpupintil ILUA has been terminated, effective immediately."

"Martu have exclusive possession native title rights over their ngurra. Companies who come here know that when they make agreements to use Martu land, JYAC takes those agreements seriously," Mr Lyall said.

"The companies agreed to give Martu the first opportunity to take ownership of its project titles or peg mining tenements over the location, but their actions allowed another company to take the area instead.

"JYAC will now consider the extent of this loss to Martu, and pursue compensation through the courts if necessary."

National Indigenous Times has contacted Reward Minerals for comment.

Jamukurnu-Yapalikurnu Aboriginal Corporation (Grandfathers country-Grandmothers country) is the trustee for Martu exclusive native title lands, covering approximately 150,000 square kilometres of the Western Desert in Western Australia.