Ovoca, the Irish mining group, has announced a radical shift in direction, beginning with a wind energy venture and gold exploration in Sweden. Edward Power reports.

The company, listed on the Dublin and London stockmarkets, is retreating from the zinc sector, where prices have plummeted to a record low.

At its annual general meeting in Dublin yesterday, chief executive Mr Richard O'Shea said Ovoca was "refocusing" and has high hopes for its operations in Sweden, where it is set to acquire exploration licences over coming months.

It has also entered a partnership with Mercury Engineering in a company called Optimum Energy, which is investigating ways of storing electricity from windfarms and other sources at off-peak times and reselling it back into the grid at peak periods.

With the ESB warning that it may not be able to keep pace with demand, the potential of such a project has never been greater, said Mr O'Shea.

"Ovoca is in discussions with Mercury as to how to fast track this project to take advantage of what we both see as a great opportunity in the current energy market," he added.

However, the group will continue to hold its zinc licences in Newcastle West, Co Limerick, in the event of an upturn in the sector. If it decides to re-enter the zinc market, it may be as a joint venture, Mr O'Shea said.

The company is currently finalising due diligence and hopes to appoint to the board Mr Jeremy Martin and Mr Jeremy Metcalfe.

The company posted a €5.5 million loss in the year ended February 2003, compared to €5.27 million for the previous 12 months.