Northern Star Resources (ASX: NST), Australia’s largest gold miner, rejected activist Elliott Investment Management’s push to install six directors, saying the proposal would undermine proper governance as the investor seeks greater influence over the company’s strategy.

Elliott proposed six candidates, including former Anglo American (LON: AAL) CEO Mark Cutifani, to support incoming Northern Star CEO Suresh Vadnagra and oversee comprehensive strategic and operational reviews. 

Northern Star said Thursday it wouldn’t commit to appointing at least three of Elliott’s nominees without properly evaluating them first.

“From the outset, Elliott has made demands to which no responsible board would agree,” Northern Star chair Michael Chaney said in a letter to shareholders. “Elliott has also been unable to suggest any tangible actions which were not already being taken.”

Elliott began pressing for changes in June after building an investment worth more than A$1 billion ($706 million). The activist disclosed Wednesday that its stake has grown to 5.6%, escalating a campaign focused on board composition, strategy and operations.

Northern Star said Elliott had also proposed nominating four people without prior discussions, an approach the miner called “unacceptable” and inconsistent with appropriate governance.

The dispute comes as Northern Star undergoes a leadership transition following the appointment of Vadnagra as CEO and changes at the board level. The miner has appointed former BHP director Terry Bowen as an independent non-executive director, succeeding John Fitzgerald as chair of the audit and risk committee.

Elliott argues a revamped board would provide stronger oversight for the incoming CEO and a broader review of Northern Star’s business. The miner counters that the activist hasn’t identified meaningful measures that management and the board aren’t already pursuing.

The confrontation puts board oversight at the centre of Elliott’s campaign rather than a single operational demand, raising the prospect of a prolonged governance battle if the two sides can’t agree on director appointments. Elliott’s growing stake gives the activist more weight as it presses its case with shareholders.

Its campaign follows a period of management and board renewal at Northern Star, leaving the two sides at odds over whether further changes are warranted and how they should be made.