Iran to launch its first atom fuel production plant

ISFAHAN, Iran (Reuters) - Iranian President Mahmoud Ahmadinejad will inaugurate the country's first nuclear fuel production complex later on Thursday, an Iranian official told Reuters.

"This is the first nuclear fuel complex ... 100 percent Iranian and the president will inaugurate this," said Vajihollah Asadi, a manager at the complex near the central town of Isfahan.

He said the plant would produce fuel for Iran's Arak heavy water reactor.

Iranian media and analysts had earlier said Ahmadinejad was expected to announce that Iran had mastered the final stage of nuclear fuel production, with the manufacturing of uranium pellets and rods for use in reactors.

The head of Iran's national security and foreign policy commission, Alaeddin Boroujerdi, told reporters in Isfahan:

"Today Iran practically proved that its (nuclear) fuel cycle has been completed and naturally suspension of uranium enrichment cannot be discussed with Iran."

Western powers suspect Iran's nuclear program is a cover for developing nuclear bombs, a charge Tehran denies.

(Reporting by Parisa Hafezi, writing by Fredrik Dahl; editing by Dominic Evans)