Papyrus Launches $4.2M Biodegradable Mining Product Contract with TBS

A Milestone for Papyrus

Papyrus Australia Limited (ASX, PPY) has taken a significant step forward by executing a contract with TBS Mining Solutions Pty Ltd, a subsidiary of Aquirian Limited (ASX, AQN), to manufacture and supply biodegradable Collar Keeper® products. Valued at around $4.2 million over an initial 3.5-year term, this contract marks Papyrus’s transition from a research-driven entity to a commercial manufacturer in the mining services sector.

The biodegradable Collar Keeper® is designed to replace traditional plastic components used in drilling and blasting operations. By leveraging Papyrus’s patented technology that converts plantation waste into sustainable fibre-based products, the company aims to reduce environmental impact while meeting the rigorous performance standards of the mining industry.

Strategic and Environmental Significance

Under the agreement, Papyrus holds exclusive global manufacturing rights for the biodegradable Collar Keeper® products, positioning it as a key supplier in a niche but growing market for sustainable mining solutions. The product’s biodegradable nature eliminates the need for post-blast retrieval, which traditionally generates plastic waste and operational inefficiencies.

This contract not only aligns with global trends toward sustainability but also complements TBS’s existing product range, offering mining operators an environmentally friendly alternative without disrupting current workflows. The collaboration underscores a broader industry shift toward integrating eco-conscious materials in heavy industrial applications.

Path to Production and Revenue

Supply is anticipated to commence in the fourth quarter of fiscal year 2026, contingent on Papyrus meeting a series of project milestones. These include fabricating commercial-scale equipment, producing and delivering product samples for testing, and securing acceptance from TBS. Failure to meet these milestones within specified timeframes grants TBS the option to terminate the contract, highlighting execution risk.

Revenue recognition will begin only upon supply commencement, with the initial contract volume representing minimum guaranteed sales. The contract also includes a three-year extension option, potentially extending the partnership and revenue stream through to 2032.

Looking Ahead

Executive Chair Al Jawhari described the contract as a proud moment for Papyrus and Australian innovation, emphasizing the company’s commitment to delivering sustainable alternatives to traditional mining materials. The agreement validates years of development and sets the foundation for scaling the technology globally.

As Papyrus moves into commercial operations, investors and industry watchers will be keen to see how quickly the company can meet its milestones and ramp up production, as well as how the market responds to this biodegradable solution in a traditionally plastic-heavy sector.