The Juukan Gorge caves in Western Australia were destroyed as part of an iron ore exploration project.
In a report released on Wednesday, the inquiry blasted Rio Tinto's "inexcusable" act, and said they should compensate the traditional owners.
Rio Tinto repeated its apology and pledged to change its practices.
Earlier this year several senior figures at the company, including Chief Executive Jean-Sébastien Jacques, resigned over the incident, following a backlash from shareholders and the public.
