Petroceltic announced yesterday that it would sell its last remaining mining interest to central Asia's largest zinc producer.

The Dublin-listed firm said it had agreed to sell its residual interest in the Shaimerden zinc mine to Kazzinc, a Glencore affiliate, for $2.25 million (€1.8 million).

Sources close to Petroceltic said the mine was a loss-maker for the company. Its sale marks the final step in an effort to reposition the firm to focus solely on its core petroleum business.

"The company is out of mining and focused on oil and gas," said Petroceltic chairman Mr Brian Cusack.

"Over the last six months, Petroceltic has refocused the company and concentrated on acquiring hydrocarbon assets with significant potential."

Mr Cusack said the firm would use the cash raised from the sale to help speed efforts to exploit two of those assets - the Kinsale Head gas field in the Celtic Sea and an onshore oilfield in Tunisia. Both sites are close to significant oil and gas finds.

Mr Cusack said he expected the Kinsale Head field to generate revenues of up to $600,000 next year.

The firm owns a 38 per cent option stake in four blocks in the field.

Scotland-based Ramco announced yesterday that it had begun pumping gas from a pipeline in the adjacent Seven Heads field last weekend.

"We are very optimistic about the Celtic Sea area," said Mr Cusack.

Petroceltic said it had applied for a licence to exploit onshore oilfield Sidi Toui in Tunisia.

Experts believe the field could hold 400 million barrels of oil, along with an unknown quantity of gas.

The nearby Elephant Field is thought to contain more than 500 million barrels of oil.