Mining magnate Andrew “Twiggy” Forrest may have to pay millions in compensation to Yindjibarndi traditional owners in the Pilbara, after the high court dismissed his bid to appeal a federal court decision that they held exclusive native title rights to the area.

In 2017, the federal court granted Yindjibarndi native title under exclusive possession to 2,700 square kilometres of land in the Pilbara, including the site of Forrest’s Solomon Hub iron ore mine, worth billions of dollars.

It is now expected that FMG will have to negotiate a land use agreement with traditional owners, or pay millions in compensation.

Yindjibarndi Aboriginal Corporation lawyer George Irvine told Guardian Australia the traditional owners were jubilant at today’s decision, which marked the end of a long and bitter legal battle.

Irvine said they were still open to negotiating “in good faith” with FMG on a settlement “but it depends on them”.

“No greater effort could have been made to negotiate with FMG,” he said. “But, in the absence of any negotiations, the only legal recourse is a claim for compensation and the Yindjibarndi will do that. They have a mining company turning their country upside down.

“FMG are currently operating on country without consent.”

Forrest has previously said he was opposed to a compensation deal, describing it as “mining welfare”.

In a statement released after the decision, FMG said it “reconfirms its earlier advice that the decision of the federal court has no impact on its current or future operations or mining tenure at the Solomon Hub, and the company does not anticipate any material financial impact to the business as a result of the decision of the full federal court”.

The Fortescue chief executive, Elizabeth Gaines, said: “Fortescue has a strong history of working with our Traditional Custodians and Native Title Partners across the Pilbara, delivering Native Title royalties, training and assistance to over 1,600 Aboriginal people and over A$2.5bn in contracts to Aboriginal businesses.

“We accept, and have always accepted, the Yindjibarndi people’s non-exclusive native title rights and interests over the relevant area. While we are disappointed with the outcome, as we believe this is an important point of law regarding the test for exclusive possession with potential implications for a range of industries, we accept the high court’s decision.

“We remain open to negotiating a land access agreement to the benefit of all Yindjibarndi people on similar terms to the agreements Fortescue has in place with other native title groups in the region.”

But Irvine said this point was not what the traditional owners wanted, saying they want to strike a deal for Yindjibarni based on their exclusive possession rights, not based on the offers FMG has made to other traditional owners groups in the Pilbara.