TORONTO (miningweekly.com) – Global potash sales had weakened in the past several months as consumers delayed purchases in expectation of lower future prices, US-based potash project developer Prospect Global Resources said on Monday.

The Nasdaq-listed company, which at the start of the month received an air quality control permit for the construction and operation of the Holbrook underground potash mine and surface processing facilities, in Apache county, Arizona, said potash sales for 2013 were expected to total between 53-million and 54-million metric tonnes.

Prices were also expected to decline for the sixth consecutive quarter.

Prospect said it agreed with the general consensus that potash sales volumes would increase to between 55-million and 58-million tonnes in 2014.

The unexpected July unravelling of the world's largest potash cartel, the Belarus Potash Company (BPC), had created market uncertainty, and was “clearly weighing on market psychology”.

“We believe that, like all market shocks, this will fade in the not too distant future and it will be business as usual for buyers and sellers of potash. While there will always be cyclicality in any commodity market, we think the long-term trend is up for potash and intend to capitalise on it,” the company said.

Prospect recently released a prefeasibility study (PFS) for its flagship potash project, which promised a potential net present value of $1.4-billion and a 27% after-tax internal rate of return.

The PFS estimated the $825-million project would produce about 1.42-million tons a year at a cost of $115/t over the initial 26-year mine life. The project is located in a favourable mining jurisdiction with established infrastructure.

The company is working towards completing a bankable feasibility study by the third quarter of 2014, with first production from the project slated for 2018.

The world’s largest potash and crop nutrient producer, Canada’s Potash Corporation of Saskatchewan, last week said BPC's demise had resulted in a “predictable”, extremely cautious market during the three months ended September 30, that had chipped away at its profit.