Canadian miner Iamgold has hit back at criticism from 5.2% shareholder RCF Management regarding the company’s management and boardroom, arguing that the US investment fund is putting its interest ahead of those of other shareholders.

RCF on Tuesday published an open letter in which it pushed for a revamp of Iamgold’s board of directors, arguing that the gold company is poorly managed and in need of an urgent fix.

RCF demanded that its three nominees – Maryse Belanger, David Smith and Lawrence Haber – be appointed to the Iamgold board, with Belanger to be made chairperson to replace Donald Charter, who retired on the weekend.

In its reply on Wednesday, Iamgold said that a board committee and independent search firm had interviewed RCF’s nominees and that Belanger and Smith were deemed acceptable, but that Haber was not. The board was willing to immediately appoint Belanger and Smith to replace two Iamgold directors and said that it had agreed to appoint a third independent RCF nominee that was “reasonably acceptable” to the board.

Belanger is currently a director at Equinox Gold, Pure Gold Mining and Sherritt International. Smith is a director of Hudbay Minerals and Pretium Resources. Haber is a director of Eco Oro Minerals and commissioner at the Ontario Securities Commission.

Iamgold said that it was also willing to agree to other demands made by RCF, including reconstituting its existing CEO search committee such that it would include two existing Iamgold directors and two of RCF’s nominees.

Other demands, such as that Belanger be immediately appointed chairperson, were concerning, as it exposed an “alarming disregard for good governance”.

RCF said earlier this week that it had approached Iamgold’s board three weeks ago, with the aim of ensuring a modest board renewal, the appointment of a new chairperson and a credible CEO search plan, as well as a plan for an operational turnaround to restore the company to cash generation before asset sales were considered.

RCF stated that it was provided with assurances that the board was agreeable to its proposals and prepared to work with the fund in good faith. However, it argued that the board had stalled and that it ultimately reneged on commitments that were deemed fundamental to an effective turnaround.

“Donald Charter, the former chair of the board, has resigned unilaterally while the board has dragged its feet on the rest of our requests. It has become clear that his toxic web of influence, cavalier attitude towards good governance, and total disregard for shareholders and shareholder value remain pervasive amongst the old guard of entrenched board members and executives.

“Public campaigning is not RCF's normal mode of operation; we prefer to engage privately, but we have been left with no choice – the unwillingness or inability of the current board to take the steps necessary to fix the culture and operational issues plaguing the company has led us to conclude that more far-reaching changes are necessary,” RCF said.

In its reply, Iamgold rejected RCF’s “revisionist narrative” regarding its engagement with the gold company and the quality of its board and management team.