Clean TeQ Water has secured a polymer supply and technology licence agreement with Broken Hill Mines for the Rasp Mine, establishing its first long-term recurring revenue stream from ATA® technology.
- Five-year initial term, extendable to 20 years
- Revenue scales with tailings volume processed
- Supports transition from solar drying to filtered tailings
- First long-term recurring revenue from ATA® technology
- Rasp Mine ramping up to 750,000 tonnes per annum
Long-Term Polymer Supply Agreement Secures Recurring Revenue
Clean TeQ Water (ASX:CNQ) has inked a long-term Polymer Supply Agreement with Broken Hill Operations Pty Ltd, a subsidiary of Broken Hill Mines Limited (ASX:BHM), marking a strategic milestone by establishing its first enduring revenue stream from proprietary ATA® tailings dewatering technology. The deal includes ongoing supply of ATA® polymer reagents and a technology licence for the Rasp Mine’s new tailings dewatering plant in Broken Hill, New South Wales.
The agreement kicks in upon commissioning of the ATA® Tailings Dewatering Plant and runs for an initial five years, with options for Broken Hill Mines to extend it up to 20 years. Both reagent supply and licence fees scale with the volume of tailings processed, aligning Clean TeQ Water’s earnings directly with mine throughput, though there is no minimum purchase commitment.
Enabling Rasp Mine’s Processing Capacity Expansion
The Rasp Mine, renowned as one of the world’s largest silver, lead, and zinc deposits, is currently ramping up to a 750,000 tonnes per annum processing capacity. This growth is supported by the new ATA® Tailings Dewatering Plant, which replaces the traditional solar drying method that had capped throughput at 500,000 tonnes per annum. By enabling filtered tailings disposal, the technology not only boosts processing volumes but also improves environmental and operational outcomes.
Clean TeQ Water’s ATA® technology uses a dual polymer system combined with hydrocyclone classification to produce stackable, sand-like tailings with low moisture content. This approach reduces reagent consumption and water loss compared to conventional methods, addressing rising regulatory and investor demands for safer tailings management following global dam failures.
Strategic Significance and Future Potential
CEO Peter Voigt highlighted the agreement’s importance, stating it converts the deployment of ATA® technology into a long-term, recurring revenue stream potentially spanning two decades. This complements the near-term construction revenue from the earlier Design and Construct contract for the plant, announced in May 2026, and showcases the commercial viability of Clean TeQ Water’s technology as the mining sector shifts towards filtered tailings solutions.
The agreement’s financial terms remain confidential, reflecting the bespoke nature of this first commercial deployment. Pricing is tailored to the Rasp Mine’s specific tailings characteristics and is not indicative of future contracts. Notably, Broken Hill Mines retains the right to terminate the agreement with compensation, adding a layer of flexibility to the arrangement.
Bottom Line?
Clean TeQ Water’s long-term polymer supply deal at Rasp Mine signals a shift toward sustainable tailings management with promising recurring revenue potential.
Questions in the middle?
- How will the commissioning timeline of the ATA® Tailings Dewatering Plant affect revenue recognition?
- Could similar long-term supply agreements be secured at other mining sites using ATA® technology?
- What impact might evolving regulatory standards have on the adoption of filtered tailings solutions?