The Bougainville landowners association that controls the former copper mine at Panguna says it is pleased the mining company Bougainville Copper Limited, or BCL, will never be welcomed back.
The company operated the mine until the outbreak of civil war in 1989.
BCL, which is part owned by the Autonomous Bougainville Government, had been vying with the Australian company RTG to reopen the mine until last month when the government placed an indefinite moratorium on mining at Panguna.
In a statement, the Special Mining Lease Osikaiyang Landowners Association said BCL failed to win community support as it would not take responsibility for the environmental and social impacts of its previous operation, or offer any compensation.
The association's chair Philp Miriori said it was time for Bougainville to attract a mining partner that would respect the people and make sure they all benefit.
He said there was broad support within the Panguna community to re-establish the mine as it was understood that Bougainville urgently required economic development and could not rely on the Papua New Guinea government for handouts.
"President (John) Momis has said he will now meet with the Panguna Landowners and develop an alternative plan for Panguna and we welcome the opportunity to work with the ABG," said Mr Miriori.
"We have invested a great deal of time in this agenda over the last couple of years and believe now the road is clear to deliver a solution where all can win and we do not need to look backwards but can focus on the future."
Last month, RTG claimed to have the association's backing.