The firm which owns Hatfield Colliery has been wound up causing �15m of government funding to be withdrawn. Coalpower went into administration in December, but the government maintained a plan to offer financial aid to the Doncaster pit if a new buyer was found.
Now it has announced the money will be offered to other coal mines as no-one has come forward to take over Hatfield.
But Doncaster North MP Kevin Hughes said the mine, which shut with the loss of 200 jobs, still has a future.
Lost jobs
Mr Hughes has been campaigning to save the pit and said its reserves of 100m tonnes of accessible reserves still made it an attractive prospect.
"I believe that Hatfield is such a good project, that the reserves are so good, that someone will put a funding package together to access that coal," he said.
"I haven't written it off totally yet."