Clean TeQ Water locks in first long-term recurring revenue stream from ATA® technology at Rasp Mine
Clean TeQ Water (ASX: CNQ) has signed a binding long-term Polymer Supply Agreement with Broken Hill Operations Pty Ltd (BHO), a wholly owned subsidiary of Broken Hill Mines Limited (ASX: BHM). The deal covers the ongoing supply of proprietary ATA® polymer reagents and a technology licence fee for use of the ATA® tailings dewatering technology at the Rasp Mine in Broken Hill, New South Wales.
The agreement establishes the first long-term recurring revenue stream generated by the ATA® technology, marking its first commercial deployment.
It follows the Design and Construct (D&C) contract for the ATA® Tailings Dewatering Plant announced on 15 May 2026.
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The deal at a glance: term, structure and scaling revenue
Under the Polymer Supply Agreement, Clean TeQ Water is appointed as the supplier of the proprietary ATA® reagents used by the plant, while BHO is granted an ongoing licence to operate the technology at the Rasp Mine. The specific pricing terms are commercially sensitive and are not disclosed.
The commercial architecture is structured as follows:
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Initial term: five years, commencing on completion of commissioning of the ATA® Tailings Dewatering Plant.
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Extension option: renewable at BHO’s election for up to three further five-year periods, to a maximum term of 20 years.
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Revenue basis: both the reagent supply revenue and technology licence fee scale with the volume of dry tailings solids processed through the plant.
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Minimum commitment: none.
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Further upside from any future expansion of the plant.
The agreement is binding. However, commencement of reagent supply and the technology licence is conditional on successful completion of the ATA® Tailings Dewatering Plant under the D&C contract.
| Component | Detail |
|---|---|
| Counterparty | Broken Hill Operations Pty Ltd (BHO), a wholly owned subsidiary of Broken Hill Mines Limited (ASX: BHM) |
| Initial term | Five years from commissioning of the ATA® Tailings Dewatering Plant |
| Extension option | Up to three further five-year periods (maximum term of 20 years) |
| Revenue basis | Scales with tonnes of dry tailings solids processed |
| Minimum commitment | None |
Director commentary
Peter Voigt, Clean TeQ Water CEO
“The execution of the Polymer Supply Agreement is an important milestone for Clean TeQ Water, converting the deployment of our ATA® technology at the Rasp Mine into a long-term, recurring revenue stream with the potential to run for up to 20 years over the operating life of the plant.
It complements the near-term construction revenue from the Design and Construct contract with ongoing reagent supply and technology licensing revenue, and demonstrates the recurring-revenue potential of the ATA® technology as the mining industry transitions towards safer, filtered tailings disposal.
We are delighted to continue working with Broken Hill Mines on the Rasp project and look forward to supporting them through commissioning and many years of operation.”
What is ATA® and why it matters to investors
ATA® is Clean TeQ Water’s proprietary tailings dewatering technology, using a dual polymer system to enable efficient production of stackable filter cake from full mine tailings streams. Put simply, it turns wet mining waste into a stable, sand-like solid that is far easier to store and manage.
The process works across three stages:
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Hydrocyclone classification separates the coarse and fine particle fractions.
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Different polymers are applied to each fraction.
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The fractions are recombined into a single stream, anchoring the fines to the coarse particles to create a sand-like material that is easy to dewater.
According to the company, the advantages of ATA® include:
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High cake solids and low residual moisture.
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Reduced reagent consumption compared with conventional flocculation-only approaches.
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Lower water losses to the tailings storage facility.
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A smaller tailings storage footprint and improved geotechnical stability.
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A materially more flexible mine-closure position for the operator.
The wider investment context matters here. The mining industry is undergoing a significant shift in tailings management, driven by heightened regulatory and investor scrutiny following recent global tailings dam failures and the introduction of the Global Industry Standard on Tailings Management (GISTM).
Wet tailings storage facilities are increasingly difficult to permit, finance and insure. Filtered tailings stacking directly addresses these issues while recovering process water for reuse in the mill.
By delivering the cake solids and stack stability traditionally associated with high-cost pressure filtration at materially lower capital and operating cost, ATA® broadens the range of mines for which filtered tailings is economically and technically viable.
The Rasp Mine context
The counterparty asset carries considerable strategic weight. Key points on the Rasp Mine include:
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Long-established as one of the largest silver, lead and zinc deposits in the world, operating in Broken Hill, New South Wales.
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Currently ramping up to its 750,000 tpa nameplate processing capacity.
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The ATA® plant allows Broken Hill Mines to transition away from the historical practice of ‘solar drying’ of tailings on site, which has to-date limited processing throughput to 500,000 tpa.
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The technology has been extensively tested through laboratory and piloting phases specifically on the Rasp Mine tailings, producing high-quality filtered tailings and meeting the mine’s required moisture content target.
Because revenue scales with the volume of tailings processed, the agreement provides further upside from any future expansion of the plant.
Investment thesis: recurring revenue and a scalable model
The agreement adds a meaningful recurring revenue base alongside the near-term construction revenue from the D&C contract, delivering two complementary revenue lines from a single project.
As the first commercial deployment, the arrangement also provides commercial validation of the ATA® technology, which may help de-risk future deployments.
The Nyrstar wastewater contract, secured in February 2026 for approximately A$10.4 million, illustrates how Clean TeQ Water’s staged commercial model moves clients from testwork through to execution, a pattern the company is now replicating with ATA® technology at the Rasp Mine.
Investors should note an important caveat. The company states that pricing under the agreement reflects the specific tailings characteristics and commercial circumstances of the Rasp project and is not indicative of pricing for future ATA® deployments. Revenue from this deal should therefore not be extrapolated across a broader pipeline.
The structure also contains a degree of downside protection. BHO may terminate the agreement for convenience on notice, but in that case must pay Clean TeQ Water a lump sum licence fee to retain the ongoing right to use the ATA® technology at the Rasp Mine.
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What’s next
Commencement of reagent supply and the technology licence remains conditional on successful completion of the ATA® Tailings Dewatering Plant under the D&C contract announced on 15 May 2026.
Looking further ahead, the arrangement positions Clean TeQ Water to support the global pipeline of new and converting tailings projects as the mining industry continues its shift away from wet tailings storage. For investors, the significance lies less in a single contract and more in the demonstrated ability to convert proprietary technology into durable, scaling revenue.
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