The developer of the largest rare-earths mine in Australia, the Lynas Corporation, did not have the cash to finish its mine and processing facilities after Western investors deserted its bond offering last winter. So Lynas agreed to sell about 52 percent of the company to the state-owned China Nonferrous Metal Mining Company on May 1.

This month, the Foreign Investment Review Board of Australia demanded that the Chinese company take a smaller stake and accept fewer seats on the board under any deal; Lynas announced on Thursday that China Nonferrous had refused and had instead withdrawn from the transaction, valued at $220 million.

Lynas said in a statement that it was “well advanced in finalizing interim funding.”

Nicholas Curtis, the executive chairman of Lynas, said in an interview on Friday that financing opportunities had improved in recent months, declining to elaborate because of a voluntary five-day suspension in its stock trading as the company reviews its options.

Mr. Curtis would not completely rule out the possibility of a transaction with another Chinese company.

But recent Australian government policies “don’t encourage you to go down that pathway,” he said.

Patrick Colmer, the executive member of the investment review board, said in a speech on Thursday that the government wanted foreign state-owned companies to take stakes of less than 50 percent in small or undeveloped Australian mines and less than 15 percent of large mining operations.

Investors had indicated over the summer that the Chinese offer was too low.

Lynas’s stock closed at 25.7 cents (29.5 Australian cents) on April 28, the last trading day before China Nonferrous made its offer of 31.3 cents (36 Australian cents) for newly issued shares. Before the deal was scuttled, the stock traded much higher than the offer, closing at 78.3 cents (90 Australian cents) on Wednesday.

Mr. Curtis defended the Chinese government’s desire to limit exports of its own minerals, saying that domestic demand was rising so fast that China had a dwindling surplus to meet other countries’ needs.