Papyrus Faces Commercial Hurdles as Biodegradable Mining Product Deal Advances
Papyrus Australia has signed a binding term sheet with TBS Mining Solutions to produce a biodegradable version of the Collar Keeper®, marking a major step in sustainable mining innovation.
- Binding term sheet with TBS Mining Solutions for biodegradable Collar Keeper®
- Contract valued at approximately $4.2 million over three years
- Manufacturing to occur at new Adelaide facility commissioning in Q4 FY26
- Potential contract extension for an additional three years
- Collaboration highlights Australian innovation in sustainable mining solutions
A New Chapter in Sustainable Mining
Papyrus Australia Limited (ASX – PPY) has taken a significant stride towards commercialising its patented technology by entering a binding term sheet with TBS Mining Solutions Pty Ltd, a subsidiary of Aquirian Limited (ASX – AQN). The agreement focuses on manufacturing a biodegradable iteration of the Collar Keeper®, a product widely used in the mining sector.
This partnership leverages Papyrus’s innovative process of converting plantation waste into eco-friendly paper and board products, aligning with growing environmental demands within the mining industry. The contract, valued at around $4.2 million over three years with an option to extend for another three, signals confidence in the commercial viability of sustainable alternatives.
From Lab to Production
Following extensive laboratory and field testing, the biodegradable Collar Keeper® is set to be manufactured at Papyrus’s upcoming commercial production facility in Adelaide, scheduled for commissioning in the fourth quarter of fiscal year 2026. This facility represents a key milestone in Papyrus’s commercialisation roadmap, transitioning the company from development to large-scale production.
Executive Chair Al Jawhari highlighted the collaboration as a testament to Australian ingenuity, emphasizing the balance between environmental responsibility and commercial performance. The partnership with TBS Mining Solutions, known for its patented mining equipment, underscores a shared commitment to innovation and sustainability.
Strategic Implications and Next Steps
While the term sheet is binding, both parties have committed to negotiating a definitive agreement by the end of October 2025. The outcome of these negotiations will be pivotal in solidifying the commercial relationship and advancing production plans.
For Papyrus, this deal not only provides a substantial revenue stream but also validates its technology platform’s potential to disrupt traditional mining consumables with biodegradable alternatives. The move could set a precedent for further sustainable product development within the sector.
Bottom Line?
Papyrus’s next challenge will be turning this promising agreement into a commercial success story as production ramps up in Adelaide.
Questions in the middle?
- Will the definitive agreement be finalized by the October deadline without major changes?
- How quickly can the Adelaide facility scale production to meet contract demands?
- What impact will this biodegradable product have on the broader mining consumables market?
