Use the Staff of Dreghood Elders on Arzeth the Merciless and slay him after he's lost his powers. Return to Naladu at the Ruins of Sha'naar after completing this task.
Yes, the elemental spirits have returned to us! We are not as strong as we once were, but a little magic can go a long way in the right hands.
Arzeth has great powers bestowed upon him by his dark lord. Take this staff. It was once a great symbol of our tribe. Use it against Arzeth and his powers will be temporarily removed from him. Defeat him then, so that my people may finally be free!