Papyrus Secures $4.2M Contract, Edges Closer to Commercialisation
Papyrus Australia has taken a significant step towards commercialisation by signing a $4.2 million supply contract with TBS Mining Solutions for its biodegradable Collar Keeper® products, while advancing its Adelaide R&D facility.
- Exclusive global supply contract with TBS Mining Solutions
- Estimated $4.2 million revenue over 3.5 years with extension option
- Adelaide Rapid Prototyping and R&D Facility nearing full operation
- Received $510k R&D tax incentive refund
- Discontinued legal proceedings with two parties
A Pivotal Commercial Milestone
November 2025 marked a turning point for Papyrus Australia Ltd as the company transitioned from technology development into early-stage commercialisation. The announcement of a supply contract with TBS Mining Solutions Pty Ltd, a subsidiary of Aquirian Limited, signals a validation of Papyrus’s fibre-based biodegradable product platform. This agreement not only confirms the technical viability of their Collar Keeper® product but also establishes a clear revenue pathway estimated at $4.2 million over the initial 3.5-year term, with an option to extend for an additional three years.
Strategic Industry Partnership
The exclusive global production rights for the biodegradable Collar Keeper® variant position Papyrus as a key player in the mining sector’s shift towards sustainable materials. This contract reflects years of development, prototyping, and collaboration, underscoring the product’s commercial relevance in industrial markets seeking environmentally friendly alternatives. The supply is expected to commence in the fourth quarter of fiscal year 2026, setting the stage for Papyrus to scale production and deepen customer engagement.
Advancing R&D Capabilities
Alongside the contract, Papyrus reported significant progress on its Adelaide Rapid Prototyping and R&D Facility. Installation and commissioning activities are nearing completion, with the facility poised to become a hub for product validation, prototype development, and customer demonstrations. This infrastructure will be instrumental in accelerating commercial discussions and supporting the scale-up of fibre-based applications beyond the initial product offering.
Financial and Legal Developments
Financially, Papyrus benefited from a $510,000 refund under the FY25 Research and Development Tax Incentive Program, netting $90,000 after loan repayments and associated costs. The company maintained a clean slate with no related-party payments during November. Additionally, Papyrus successfully discontinued legal proceedings initiated earlier in the year with Perfection Australia Group Pty Ltd and Union Pacific Equities Pty Ltd, removing a potential distraction as it focuses on commercial growth.
Looking Ahead
With the contract in place and the R&D facility nearing full operation, Papyrus is well-positioned to transition from development to revenue generation. The coming months will be critical as production ramps up and the company explores further product extensions within the mining sector and beyond.
Bottom Line?
Papyrus’s commercial breakthrough with TBS Mining Solutions sets the stage for growth, but execution on production and market expansion will be key to sustaining momentum.
Questions in the middle?
- When exactly will production commence and reach full capacity in Q4 FY26?
- What are the prospects for extending the contract beyond the initial term?
- How will the new R&D facility accelerate product innovation and customer acquisition?
