A team at DICE showed EA a prototype that was "declined", according to a Eurogamer Sweden translation of a Press 2 Play TV report.
"Patrick [Soderlund - EA driving and shooting game boss] acknowledges that Mirror's Edge didn't match up to their expectations regarding sales, and that has stopped the sequel that has been in development," declared the report, published originally in December.
"EA was shown a prototype, but declined with askance. The project has been stopped - involved parties at DICE are working on something else now. Patrick himself seems to have Mirror's Edge near his heart, but they are not in the business of charity."
Presumably the extra development is going into Battlefield 3 - EA's well publicised attempt at wrestling shooter supremacy from the Call of Duty series.
Dump something original to make a safe bet rehash? Sounds about right.