Aquirian Limited (ASX: AQN) Announces $4.2 Million Biodegradable Product Contract
In a recent ASX announcement, Aquirian Limited (ASX: AQN) confirmed it has secured a $4.2 million contract for its Aquirian Biodegradable Collar Keeper. The agreement, executed through its wholly-owned subsidiary TBS Mining Solutions, is with Papyrus Australia Limited (ASX: PPY) for the manufacture and supply of the innovative product.
This agreement has an initial 3.5-year term and includes an option to extend for an additional three years. If the option is exercised, the total contract value could increase to approximately $7 million. Supply is scheduled to begin in late Q4 FY26, pending the successful delivery and acceptance of trial products.
The biodegradable collar keeper is designed to eliminate the need for post-blast plastic waste retrieval while preserving the essential blasthole stabilisation function required in drill and blast operations. This announcement formalises and supersedes the binding term sheet previously disclosed on 20 August 2025.
Managing Director Greg Patching commented: “This is an exciting step forward in our commitment to sustainable innovation with a multi-use biodegradable Collar Keeper® – a greener, smarter alternative for our industry. Blasthole stabilisation is fundamental to the Drill & Blast process, and our Collar Keeper® is central to this protection. This biodegradable variant advances our Bootless Bench® vision, reduces environmental impact, and sets a new benchmark for responsible blasthole quality management.”
Contract Terms Deliver Multi-Year Revenue Visibility
This investor update highlights a commercial structure that provides TBS Mining Solutions with predictable revenue extending into FY27 and beyond. The manufacturing agreement’s structure is similar to that of TBS’s existing Collar Keeper® product line, which suggests comparable margin profiles.
| Contract Element | Detail |
|---|---|
| Initial Value | ~$4.2M over 3.5-year supply term |
| Total Duration | 3.5 years with 3-year extension option |
| Potential Total Value | ~$7M if extension exercised |
| Estimated Annual Revenue | ~$1.2M during initial term |
| Commencement | Late Q4 FY26 |
The 3.5-year initial term offers forward earnings visibility, and the extension option creates the potential for a long-term commercial relationship. For Aquirian shareholders, the contract represents a material revenue contribution that leverages existing TBS customer relationships and distribution infrastructure with limited new capital investment.
Furthermore, the agreement validates TBS’s product innovation strategy and manufacturing scalability. Securing a multi-year supply contract demonstrates the commercial viability of sustainable mining consumables.
How Does the Biodegradable Collar Keeper Address Mining Waste?
Traditional plastic Collar Keeper® products must be retrieved after blasting, which adds to operational workloads and plastic waste accumulation. The Aquirian Biodegradable Collar Keeper removes this requirement entirely as its material degrades naturally.
The new product maintains core blasthole stabilisation performance while eliminating the on-bench labour associated with collecting used plastics after blast events. This innovation directly addresses the increasing focus from investors and mining companies on environmental performance.
Key operational benefits include:
- Elimination of post-blast retrieval requirements
- Reduction in on-bench labour costs
- Zero plastic waste accumulation
- Seamless integration with existing operations
- Enhanced environmental credentials for mining operators
What Are Collar Keeper Products in Mining Operations?
Collar Keeper® products are used to stabilise and protect blasthole collars—the top opening of drill holes—from collapse or contamination before explosive charging. The integrity of blastholes directly influences blast quality, fragmentation, and overall mining productivity.
Collar protection is a standard consumable in modern drill and blast operations in surface mining worldwide. The quality of blasthole preparation is fundamental to the effectiveness of subsequent blasting and overall mining efficiency.
| Feature | Traditional Collar Keeper® | Aquirian Biodegradable Collar Keeper |
|---|---|---|
| Post-Blast Retrieval | Required | Not required |
| Plastic Waste | Generated | None (biodegrades naturally) |
| On-Bench Labour | Higher | Reduced |
| Environmental Impact | Plastic accumulation | Sustainable degradation |
| Operational Integration | Standard | Seamless (complementary) |
For mining companies in jurisdictions with restrictions on plastic waste, the biodegradable option presents a significant operational advantage. The reduction in labour and waste delivers direct cost benefits in addition to environmental credentials.
Papyrus Partnership Brings Sustainable Materials Expertise
Papyrus Australia Limited (ASX: PPY) contributes its patented agricultural waste processing technology to the manufacturing partnership. The company specialises in converting banana plantation waste into alternatives for wood, paper, and plastic products through a process that uses no harmful chemicals.
This collaboration combines TBS’s expertise in mining consumables with Papyrus’s proven innovation in sustainable materials. For investors, Papyrus’s established patented process provides a solid manufacturing foundation, reducing technology risk.
Does the New Product Replace Existing Offerings?
The biodegradable collar keeper is an addition to TBS Mining Solutions’ existing product range and does not replace current offerings. This complementary strategy allows mining clients to choose between traditional and biodegradable versions based on their specific site requirements, environmental targets, or regulatory constraints.
This approach positions the new product to capture new demand rather than cannibalising existing Collar Keeper® sales. It enables TBS to address diverse customer needs within the same product category while maintaining its current revenue streams.
The product also supports TBS’s broader Bootless Bench® vision—a strategy aimed at improving blast preparation efficiency, reducing on-bench labour, and enhancing safety for mining customers. The biodegradable variant advances this vision by eliminating post-blast retrieval.
What Are the Investment Implications for Aquirian Shareholders?
The $4.2 million contract provides a multi-year earnings contribution with the potential to increase to $7 million, delivering revenue visibility into FY27 and beyond. For shareholders, the agreement validates TBS’s product innovation and manufacturing scalability.
Key investment considerations include:
- Revenue diversification: Multiple product variants expand the market opportunity in the drill and blast consumables category.
- Forward visibility: The multi-year contract structure provides earnings predictability for the TBS division.
- ESG alignment: The product addresses the growing demand for sustainable mining solutions.
- Timeline impact: Revenue contribution will commence in late Q4 FY26, appearing in FY27 financial results.
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