PROFITABLE mining companies should be prepared to give Aboriginal people direct ownership in developments rather than handouts as part of building economic opportunities in remote communities, the federal resources minister says.

Continuing the shift in federal indigenous policy following the landmark apology to the stolen generations earlier this year, Martin Ferguson said the minerals boom should deliver economic benefits to remote communities.

While it was up to the mining companies and communities to work out what was most appropriate for their circumstances, Mr Ferguson said he supported the idea of traditional landowners taking a direct stake in projects through share holdings, rather than sitting back and waiting for passive income or handouts".

"The Government's focus is on securing sustainable economic opportunities for the indigenous community," Mr Ferguson told The Age yesterday.

"We want to see agreements which can include potential shares by the indigenous community in a company structure, but especially improvements in the local level in education and training leading to real jobs".

"The last thing we want is further handouts which clearly are not to the long-term benefit of local indigenous communities."

"The Government is not interested in a beads-and-blankets approach to negotiations with the indigenous community based on handouts."

Mr Ferguson said he had made it clear to mining companies since taking the resources portfolio that the Government wanted to see mining developments improve infrastructure and jobs for local Aborigines.

"It is smart to sit down and say, 'look, maybe part of the negotiated outcome is a share so you can own it, you are a part owner, therefore you've got a stake in making it work'.

"We want structures that provide for sustainable economic growth, education foundations, apprenticeships, cadetships and employment.

"In some instances they are setting up local indigenous companies and doing the mining themselves."

Mr Ferguson's comments follow a speech by Attorney-General Robert McClelland signalling that the Rudd Government would overhaul the complex system of native title in an effort to secure better outcomes for indigenous people.

While the Government's agenda on native title remains unclear, Mr Ferguson said he would support changes to the process that made native title negotiations quicker and more effective for both traditional owners and mining companies.

His comments suggest the proposed reworking would be procedural rather than a root-and-branch overhaul.

"On the question of native title, I am always open to any process which facilitates the negotiation, which shortens the duration and is of a cost-saving nature."

He said any review of native title would involve both him and his department.