Native species may have adaptive traits that are advantageous for overcoming the adverse environmental conditions faced during the early stages of mine land rehabilitation. Here, we examined the nitrogen (N) growth responses of two native perennial grasses (Axonopus longispicus and Paspalum cinerascens) from canga in nutrient-poor iron mining substrates. We carried out vegetative propagation and recovered substantial healthy tillers from field-collected tussocks of both species. These tillers were cultivated in mining substrates at increasing N levels. The tillering rates of both species increased with the N application. Nonetheless, only in P. cinerascens did the N application result in significant biomass increase. Such growth gain was a result of changes in leaf pigment, stomatal morphology, gas exchanges, and nutrients absorption that occurred mainly under the low N additions. Reaching optimum growth at 80 mg N dm−3, these plants showed no differences from those in the field. Our study demonstrates that an input of N as fertilizer can differentially improve the growth of native grasses and that P. cinerascens plants are able to deposit high quantities of carbon and protect soil over the seasons, thus, making them promising candidates for restoring nutrient cycling, accelerating the return of other species and ecosystem services.