The firm which owns Hatfield Colliery has been wound up causing £15m of government funding to be withdrawn.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.
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."