Papua New Guinea's former prime minister Sir Mekere Morauta has been nominated to replace Australian economist Ross Garnaut as chairman of PNG's largest mining company.

Professor Garnaut resigned after being forced out of the job by PNG government travel bans.

Sir Mekere was nominated to chair Ok Tedi Mining Limited by the board of the PNG Sustainable Development Program (PNGSDP), Ok Tedi's biggest shareholder.

He thanked Professor Garnaut for his 10 years of involvement with Ok Tedi and the development program, saying he had made a very significant contribution to Papua New Guinea.

Sir Mekere, who was appointed as chair of the development program in October, has a long track record of fighting corruption and improving financial administration.

PNGSDP is a charitable trust now worth $1.4 billion.

The travel ban on Professor Garnaut was imposed in September after BHP Billiton refused to comply with prime minister Peter O'Neill's demand to renegotiate its agreement governing control of the development program.