Desert Mountain Energy pushes to reclaim helium on US critical minerals list, focuses on Arizona

Helium exploration and production company Desert Mountain Energy has said it is working to get helium back on the United States Geological Survey’s (USGS) critical mineral list.

The company confirmed its efforts in a recent announcement, which also confirmed its efforts with stakeholders in Arizona to streamline helium extraction processes in the state.

Helium was removed from the USGS’s critical minerals list in November 2021. The USGS, an agency under the Department of the Interior (DOI), is required by the Energy Act of 2020 to refresh the list of critical minerals at least every three years.

Read more: Helium removed from US critical minerals list

Helium’s exclusion from the 2021 list was surprising, as it was included in 2018.

Robert Rohlfing, CEO of Desert Mountain Energy, said there is still work to be done, but the company is encouraged by the progress it has made and the meaningful conversations it has had.

He added, “The importance of helium to Arizona’s key industries is becoming increasingly recognised, and we are optimistic about the road ahead.”

According to the Energy Act of 2020, critical minerals are defined as those which:

1. Are essential to the economic or national security of the US
2. The supply chain of which is vulnerable to disruption (including restrictions associated with foreign political risk, abrupt demand growth, military conflict, violent unrest, anti-competitive or protectionist behaviours, and other risks throughout the supply chain)
3. Serve an essential function in the manufacturing of a product (including energy technology, defence, currency, agriculture, consumer electronics, and healthcare-related applications), the absence of which would have significant consequences for the economic or national security of the US.

Helium is, of course, critical for several of the listed products and markets and is prone to recurring shortages, despite Helium Shortage 4.0 being behind us.

Read more: Helium shortage is over but supply remains fragile

Aside from its efforts to get helium back on the critical minerals list, Desert Mountain Energy is also working to improve the state-of-play for helium companies in Arizona.

Desert Mountain Energy had to previously move its operations from Arizona to New Mexico. Despite extensive engagement with the Arizona regulatory authorities, the company became frustrated with repeated delays and long lead times associated with enhanced recovery permitting and therefore relocated.

Even with its re-located plant, Desert Mountain Energy remains committed to working closely with all stakeholders to achieve a balanced approach that benefits Arizona’s economy and environment.

Senator Janae Shamp, a dedicated supporter of the initiative, stated, “Arizona is open for business, and we want operators to know that they are welcome here.”

“We are focused on ensuring this can be done in a safe and sustainable way that will protect our aquifers while bolstering the supply chain that supports Arizona’s thriving semiconductor manufacturing, cutting-edge healthcare, and defence industries.”