A MAN who earns about $40,000 a year yesterday gave up the chance to become one of Australia's richest men.

Traditional owner Jeff Lee, 39, persuaded Labor to promise to absorb Koongarra - which sits on a small but rich uranium deposit - into Kakadu National Park.

The decision means that billions of dollars from the export of uranium oxide will be lost.

Mr Lee could have earned millions in royalties.

But he said: "I don't worry about money. It's the country that's important to me.

"My ancestors walked on that land long before any balanda came.

"There are sacred sites and burial grounds there. I don't want anybody to move those bones.

"I want to respect my ancestors."

Mining company Areva, which had rights over the 1200ha of Koongarra but had never been granted an exploration permit, is unlikely to sue for compensation.

The French firm said it would respect the Federal Government's decision.

Federal Environment Minister Peter Garrett said the move meant there would never be mining in Kakadu.

The Ranger uranium operation near Jabiru is not part of the park.

Mr Garrett said the Koongarra decision was "fantastic".

"This is a great day for the whole of Australia," he said.

The Minister said the World Heritage Committee recommended in 1988 that the land be incorporated into Kakadu.

He said Australia's World Heritage-listed parks generated $12 billion a year.

Labor's decision was applauded by the Northern Land Council and the Environment Centre.

Koongarra, which is east of Nourlangie Rock, is believed to hold 17,500 tonnes of high-grade ore and would have been mined using an open-cut technique.