A conflict of interest with iron ore off-take customer, Noble Group, has forced the resignation of two directors at Territory Resources.
Director Richard Elman and his alternate Harindarpal Banga, both directors with Noble, have agreed to step down after conflict of interests arose over existing and ongoing commercial arrangements.
Noble, which was founded by Mr Elman, is Territory's only off-take customer for its Frances Creek operation in the Northern Territory after entering into an agreement in August 2007.
The Hong Kong-based Noble holds a 26.45 per cent interest in Territory.
Mr Elman was appointed to Territory's board in June this year, following the sudden departure of former chairman Michael Kiernan.
Territory managing director Andrew Simpson stressed in a statement that Noble continues to back the company in relation to their shareholding and marketing programs.
Calls to Mr Simpson were not returned at time of publishing.