The Turnbull government has rejected a call to remove the ability of Aboriginal Land Councils to veto applications for exploration and mining licences.
A parliamentary committee recommended in an October 2017 report that land rights laws be amended to remove the veto.
The red tape committee's report concluded the economic objectives of land rights laws were not being met because of the five-year power of veto.
But the federal government on Friday said in its response to the report it supported the long-standing right of traditional Aboriginal land owners to control Aboriginal land use under the Lands Rights Act.
However a working group involving federal and NT government officials and Land Council representatives will consult with peak industry bodies this year on reforming the exploration and mining provisions of the Act.