The band announced on social media that Hillman died at his US home on Sunday after a cancer battle, aged 62.

"We're grieving the loss of our brother Bones Hillman, who has passed away at his home in Milwaukee today after a cancer battle, "the band said.

"He was the bassist with the beautiful voice, the band member with the wicked sense of humour, and our brilliant musical comrade.

"Bones joined Midnight Oil way back in 1987 after stints in various Kiwi bands, most notably, The Swingers. He played and sang on every Midnight Oil recording since Blue Sky Mining and we did thousands of gigs together.

"We will deeply miss our dear friend and companion and we send our sincerest sympathies to Denise, who has been a tower of strength for him.

Haere r Bonesy from Jim, Martin, Peter & Rob."

Born in Auckland in 1958 as Wayne Stevens, Hillman adopted the stage name Bones Hillman in the 1970s.

The band's most recent release came just over one week ago with The Makarrata Project: a collaborative mini-album with the stated intention of keeping the Uluru Statement from the Heart at the forefront of the national conversation.