The petition sought to extend Schedule 4 to 12 nautical miles from Te Moehau to Te Aroha, encompassing the entire Coromandel Ecological District, and to ban further blasting, underground and open cast mining within residential zones or within 400m of any residence in the Coromandel-Hauraki region.
The committee considering the petition said it appreciated the time and effort from the petitioner and submitters.
However the conservation land proposed for protection was currently being considered for redress as part of Treaty settlements.
"For that reason, we do not think it is appropriate for us to make any recommendations on whether the status of this land should change."
Coromandel Watchdog is reviewing the Government's reasoning.
Spokesperson Augusta Macassey-Pickard said it appeared there was no specific support from Labour, despite the commitments they made when the petition was presented on the steps of Parliament just before the election in 2017.
"It seems that Labour has not supported this, despite having it as a policy in their manifesto for more than 10 years and Minister David Parker restated support for the move publicly lastyear."
The group says a mining permit application has been lodged over more than 5000ha of high value conservation land that's home to numerous threatened species.
"We have deep concerns about mining activities here, the precedents that would be set for all the rest of the Coromandel, and how desperately vulnerable this environment, these species are to industrial mining."