Iran steps up N-fuel production: IAEA

Washington: Inspectors for the International Atomic Energy Agency believe that Iran is starting to enrich uranium on a much larger scale after solving key technical problems in that process, The New York Times reported on Monday.

At a short-notice inspection of Iran's operations in its main nuclear facility at Natanz on Sunday, inspectors found that Iranian engineers already were using about 1,300 centrifuges and producing fuel suitable for nuclear reactors, the newspaper said on its web site, citing diplomats and nuclear experts in Vienna.

The major powers have accused Iran of pursuing a nuclear program to develop weapons but Tehran insists it only wants to produce electrical energy.

In a story from Vienna, where the IAEA is headquartered, the newspaper said until recently Iranian engineers had been having problems keeping centrifuges spinning at the rate needed to make nuclear fuel.

"We believe they pretty much have the knowledge about how to enrich," the newspaper quoted Mohamad Al Baradei, IAEA director-general, as saying. "From now on, it is simply a question of perfecting that knowledge. People will not like to hear it, but that's a fact."

The material produced so far would have to be enriched further before it could be turned into bomb-grade material, the Times said, and it is uncertain whether Iran has the technology to produce a weapon small enough to fit on its missiles.