MARK COLVIN: The Federal Government has announced plans to repeal legislation which could force the Northern Territory to accept a national nuclear waste dump.

But a dump is likely to be located there anyway. It looks increasingly likely that waste will be kept at a remote pastoral property on Aboriginal land north of Tennant Creek. It has been offered to the Federal Government as a possible site. But there's debate about whether Aboriginal custodians have been properly consulted.

Sara Everingham reports.

SARA EVERINGHAM: The Federal Government says low and medium level nuclear waste being reprocessed overseas has to be returned to Australia and a nuclear waste facility is needed to store it. The longstanding question has been where it will go. Muckaty Station, 120 kilometres north of Tennant Creek could be the site.

The Federal Resources Minister Martin Ferguson.

MARTIN FERGUSON: The initial consideration will be for the site that has volunteered to be by the Northern Land Council on behalf of the Ngapa people.

SARA EVERINGHAM: In 2005 the Howard government introduced legislation that would override any Northern Territory law opposing a nuclear waste dump being established in the Northern Territory. It looked to the Northern Territory after South Australia won a High Court challenge against a federal government's plan to build the facility there.

The former government nominated three sites on defence force land in the Northern Territory as possible locations. The Northern Land Council nominated another Muckaty Station on Aboriginal land.

Now Martin Ferguson says his Government plans to overturn that legislation.

MARTIN FERGUSON: I will introduce in its place a process which requires me as the Minister to actively engage to establish a purpose-built facility, having proper regard to the normal processes that exist in Australia, going to issue of heritage and environmental protection. 

SARA EVERINGHAM: The bill rules out the three sites proposed by the previous government. That leaves Muckaty Station. The traditional owners at Muckaty Station offered a one and a half square kilometre patch of land for a one-off payment of $12 million.

In 2007 one of those traditional owners told the ABC they made the decision for their children's future but 57 other traditional owners from the Muckaty Land Trust have signed a petition opposing its use as a nuclear waste dump. 

Diane Stokes is one of them.

DIANE STOKES: I want to get the traditional owners together, talk about it and then maybe have a ceremony to show Martin Ferguson who we are, because he didn't come when we asked him. 

We've written him a letter to come, he never come towards us. He never came and faced us. He never came and talked to us. None of the people, not even the NLC came and talked to the traditional owners.

SARA EVERINGHAM: The Northern Land Council wasn't available for an interview today. A spokesman says the council is still waiting to see the full detail of the legislation. In the past the council has said it has consulted with the relevant traditional owners within the Muckaty Land Trust.

Natalie Wasley from the Beyond Nuclear Initiative says all the traditional owners in the land trust have the right to be consulted.

NATALIE WASLEY: There's a large number of traditional owners who have written to the Minister, the latest letter which was received by the Minister in the middle of 2009 has 57 signatures from traditional owners who have strong cultural connections to that area, expressing opposition to the proposal.

And this is a very important document because there's a large number of people from the Ngapa group which is the group the Minister is purporting are all in support of this proposal. So it clearly does not have consent from all of the affected people.

SARA EVERINGHAM: Have you spoken to the traditional owners who have nominated their site?

NATALIE WASLEY: I haven't spoken directly to those traditional owners. They have been mostly in discussion with the Northern Land Council but I have spent a number of years around Tennant Creek and speaking with people affected by this proposal and they have said they will sustain their opposition, they strongly believe they have a right to be speaking about this proposal.

SARA EVERINGHAM: The Muckaty nomination has also been criticised by Martin Ferguson's own Labor colleagues. In opposition in 2007, Peter Garrett said the consultation process was a joke and that the project needed the full consent of communities.

Martin Ferguson says Muckaty Station will be subject to a full scientific and environmental assessment and most importantly, the approval of Muckaty's traditional owners including those who don't approve of the proposal.

MARTIN FERGUSON: Well I've indicated to the Northern Land Council that I'm prepared to meet with the traditional owners. It would then be a requirement for them through my department to have full and proper negotiations.

SARA EVERINGHAM: If Muckaty Station fails those tests, the Minister says he'll call for other nominated sites around the country.

MARK COLVIN: Sara Everingham.