South Arkansas Has ‘Hope for Revival’ in Lithium Industry
Welcome to Lithium Link, your resource for insightful news and expert commentary on the latest happenings in the Arkansas lithium scene.
This week:
A national newsmagazine, “Matter of Fact with Soledad O’Brien,” comes to South Arkansas to examine the lithium industry’s prospects there — and what local citizens think about it.
Plus:
Standard Lithium Ltd. of Vancouver takes on a new partner — and millions of dollars in investment — to accelerate progress on one of its Arkansas wells.
And there’s a new name in South Arkansas: Pantera Minerals of West Perth, Australia, has entered Lafayette County with plans to explore lithium on more than 17,000 acres.
‘Hope for Revival’
First, in her report for “Matter of Fact with Soledad O’Brien,” reporter Jessica Gomez takes a ride with Lafayette County Judge Valarie Clark, interviews Standard Lithium Ltd. CEO Robert Mintak, and spends time with local landowners Bruce and Linda Alford for her report on the growing lithium industry in South Arkansas.
The five-minute report, which you can watch here, says the possibility of a robust lithium mining industry is providing hope to residents, who in the shadow of a decades-gone oil boom have watched as businesses leave and the population dwindles.
Clark put it this way: “You drive downtown and you just think, ‘Oh. They really don’t have a lot to offer.’”
Lithium could be an economic adrenaline shot to the region, with companies like ExxonMobil, Tetra Technologies, Albemarle Corp., Standard Lithium and others exploring ways to efficiently pull lithium from the Smackover Formation that runs under South Arkansas.
Mintak tells Gomez that demand is great for the mineral, which his company extracts from brine using a process called “direct lithium extraction.” It builds on a practice — brine extraction from bromine — that operators in Arkansas have been doing for 60 years.
“South Arkansas has got a rich energy heritage — boom and bust. We’re looking to not repeat that cycle,” Mintak said. “Being prepared is going to be critical for the community’s success.”
One open question: Royalties for landowners. Gomez talks to the Alfords, who own a cattle ranch and have leased 2,100 acres to companies mining for bromine and lithium. The tough economics of farming make leasing land to energy companies nearly a no-brainer, they say. But how much landowners will share in lithium profits remains up in the air — a recent Arkansas Oil & Gas Commission hearing on the matter was scuttled at the last minute. And they wonder about the long-term environmental effects of mining.
Also featured in the story: Akili Moses-Israel, director of Business, Industry and Continuing Education at the University of Arkansas Hope-Texarkana, who sees lithium as an opportunity to provide local workers more than just a job, but a career.
Equinor Takes A Stake
Next: Standard Lithium and Equinor ASA, a multinational energy company based in Norway, has announced a partnership whereby Equinor will invest $160 million and take 45% stakes in two Standard Lithium operations, in South Arkansas and Texas. Standard pioneered the direct lithium extraction (DLE) process in South Arkansas and jump-started the lithium rush there.
“With this partnership, we have the opportunity to accelerate our progress and carve out a significant role in shaping the future of sustainably produced lithium,” Mintak said in a news release.
Standard says its deal with Equinor combines its “DLE and Smackover brine processing expertise, plus world-class assets, with a global energy major with deep experience in sub-surface assessment and production, project development, financing, construction and operations.” It also de-risks the project and strengthens Standard’s financial position, the company said.
Read more about the deal from Arkansas Business and the Arkansas Democrat-Gazette.
In Case You Missed It
The Magnolia Reporter reports that Pantera Minerals of West Perth, Australia, has entered Lafayette County with plans to explore lithium on more than 17,000 acres. In February, the company purchased Daytona Lithium Pty Ltd., which holds brine leases there.
In a shareholder presentation, the company said it’s got another 9,400 acres under negotiation and that it plans to begin a drilling operation in the second quarter to validate its exploration target.
It also added two lithium industry executives to its board of directors.
Speaking to the Camden News, Pantera Chairman Barnaby Egerton-Warburton said the company looked at the Smackover and brines in the U.S. and decided to come to South Arkansas:
"We've had a lot of experience. We're surrounded by a lot of expertise. Smackover is interesting because of the great jurisdictional benefits of being in Arkansas," he said.
Read more about Pantera’s plans in the Magnolia Reporter and the Camden News.
Parting Shot
Earlier this month, Arkansas Democrat-Gazette editorial writer Tommy Foltz assessed investments by major energy companies in Arkansas lithium, specifically the Equinor investment in Standard:
“… [T]his substantial investment makes Standard more competitive with energy giant ExxonMobil in the Arkansas lithium industry.
“Additionally, the fact that ExxonMobil has chosen to compete here tells us that just because the industry hasn't transformed South Arkansas yet, it's still real.”
Read the full editorial here.
