Iran announces "industrial" nuclear fuel work

By Parisa Hafezi

NATANZ, Iran (Reuters) - Iran announced on Monday it had begun industrial-scale nuclear fuel production in a fresh snub to the U.N. Security Council, which has imposed two rounds of sanctions on it for refusing to halt such work.

The announcement marks a shift from experimental atomic fuel work involving a few hundred centrifuges used for enriching uranium to a process that will involve thousands of machines.

Western nations fear this will bring Tehran closer to what they say is its aim of building atomic bombs. Iran, the world's fourth largest oil exporter, insists it only wants the fuel for generating electricity so it can export more of its oil and gas.

"I proudly announce that as of today Iran is among the countries which produce nuclear fuel on an industrial scale," President Mahmoud Ahmadinejad told a gathering at the Natanz uranium enrichment facility in central Iran.

Washington swiftly denounced the declaration, saying it was a further sign Iran was defying the international community.

Iran, which announced a year ago it had produced its first tiny batch of enriched uranium, had said it would install 3,000 centrifuges as a first stage towards "industrial-scale" output.

Chief nuclear negotiator Ali Larijani was quoted by Mehr News Agency as saying Iran had "reached the capacity of 3,000". Asked if feedstock uranium gas had been injected into them, he told reporters: "Yes, we have injected gas."

Diplomats previously said Iran had set up a third of the 3,000 machines but had not introduced feedstock. An Iranian official told ISNA news agency U.N inspectors who routinely visit would confirm centrifuge numbers in 20 days' time.