The boss of social housing developer Aboriginal Housing Company faced a Sydney court for the first time since being formally accused of sexually abusing a Redfern teenager four decades ago.
Sydney councillor Yvonne Weldon has since publicly identified herself as the alleged victim, then aged 15.
Mundine was aged 39 at the time.
The now-79-year-old, who is on bail, sat with his hands clasped for much of the proceedings in Sydney's Downing Centre on Wednesday.
The matter has been referred to the Department of Public Prosecutions and will next be heard on October 28.
Outside court, he did not answer reporters' questions about the case.
NSW Police on Thursday arrested Mundine after investigating allegations of a sexual assault since December.
He faces two historical sexual assault charges, including that he had sexual intercourse with a person aged under 16 years without consent in June 1986.
If convicted, he faces a maximum of 10 years in prison.
The second sexual assault charge alleges he placed his mouth on the victim's breast, also in June 1986, court documents show.
His lawyer, Fahim Arya, told AAP on Friday he intended to fight both charges.
In a social media post, Councillor Weldon identified herself as the complainant and said she had carried the burden during four decades.
The former chair of the Metropolitan Local Aboriginal Land Council and first Aboriginal councillor to sit on the City of Sydney council explained why she made the complaint.
"I came forward for the children who are here now and to break the culture of silence that allows abuse to continue," Councillor Weldon said.
"To other survivors of (alleged) abuse in its many forms, you are not alone. It is never too late to speak up and seek support."
Mundine, a Bundjalung man, has been involved in the Redfern community for decades.
His work includes directorships at the Redfern Aboriginal Corporation and the Aboriginal Medical Service.
The former apprentice painter has also led the Aboriginal Housing Company for the better part of its 53-year history, overseeing several projects in The Block in Redfern.
He has been among several prominent Mundines in the Redfern area.
Nephew and former boxing world title holder Anthony Mundine expressed shock at the allegations against his uncle
"I am strictly against any form of sexual abuse," he told the Daily Telegraph.
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