Anson Resources (ASX:ASN) wants to trial an untested lithium extraction method on the Green River. Initially approved by the state engineer, the approval is now under reconsideration.

Why the State Engineer Changed Her Mind

The Utah state engineer, Teresa Wilhelmsen, is reevaluating her approval of water rights for lithium extraction along the Green River. She initially cited the increasing demand for lithium due to its importance in renewable energy. However, a coalition of farmers, residents, and environmentalists argued using Colorado River water for an unproven project poses significant risks.

Environmental Concerns Raised

Opponents challenged the water use, potential groundwater risks, and environmental impacts on the Green River. They demanded a thorough review of the project’s implications. Deputy State Engineer Michael Drake acknowledged that the concerns merited further examination.

Anson Resources’ Lithium Extraction Plans

Anson Resources, through its subsidiary Blackstone Minerals, applied to tap into a deep aquifer, and the state initially approved using 14,000 acre-feet of groundwater annually. Utilizing direct lithium extraction, which purportedly uses less water than traditional methods, they plan to minimize water consumption and reinject wastewater underground.

Opposition and Reevaluation

Despite their plans, environmental groups, like the Great Basin Water Network, emphasized the area’s vulnerability to blowouts and pollution. The project risks drilling through a potentially radioactive aquifer near an old uranium mill, raising public safety concerns. Under pressure, Wilhelmsen withdrew her initial approval pending further assessment. The review will determine if the decision aligns with public welfare and environmental protection.

Next Steps for Anson Resources

Anson’s CEO, Bruce Richardson, expressed a willingness to cooperate with state and oversight agencies, aiming to protect natural resources. The environmental consequences and legal scrutiny surrounding this project highlight the need to balance resource extraction with environmental conservation.

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