Iran set to say mastering final stage of enrichment

TEHRAN (Reuters) - President Mahmoud Ahmadinejad is expected to announce Iran has mastered the final stage of nuclear fuel production when the Islamic state celebrates its National Nuclear Day on Thursday.

"I will have good nuclear news for the respectful Iranian nation tomorrow (April 9)," Amadinejad said on Wednesday in a televised speech at the central city of Isfahan.

Analysts expect he will announce that Iran has completed the long process of uranium enrichment, enabling the country to produce its own fuel.

"A possible announcement will be production of natural uranium pellets for Iran's Arak heavy water reactor and also production of fuel rods and assembling rods into bundles," said an analyst, who asked not to be named. "It is the final stage in a long process to produce nuclear fuel."

The nuclear fuel cycle includes mining and milling of uranium ore, uranium enrichment, fabrication and use of nuclear fuel, reprocessing of used nuclear fuel, and disposal or management of radioactive waste or unreprocessed spent fuel.

The International Atomic Energy Agency (IAEA) in its February 19 report said it could not verify Iran's planned Arak heavy water reactor was being designed only for peaceful uses. Tehran says the complex will be geared to produce solely isotopes for medical care and agriculture.

Iran's Students News agency ISNA said Ahmadinejad would inaugurate a nuclear fuel fabrication facility in central Iran.

"This factory produces nuclear fuel pellets and rods," ISNA reported on Wednesday without giving a source.

Iran's nuclear chief Gholamreza Aghazadeh said in 2007 the Islamic state had produced and tested nuclear fuel pellets of enriched uranium.

"CHANGE YOUR WAY"

Western powers fear Iran may configure the Arak reactor to derive plutonium from spent fuel rods as another possible source of bomb-grade fuel, besides its Natanz uranium enrichment plant, which is under daily IAEA surveillance.

Iran has long been working on its uranium enrichment capability to fuel its developing nuclear power program.

The U.N. Security Council has so far issued three sanctions resolution against Tehran for defying its demand to suspend the country's uranium enrichment activities, which could also be used to produce nuclear weapons.

Iran, the world's fourth largest oil exporter, says its nuclear program is only aimed at generating electricity.

U.S. President Barack Obama has pushed for a "new beginning" in bilateral ties, and could play a role in mending bridges after almost three decades of mistrust between Tehran and Washington.

Iran has responded cautiously to the overture, saying Washington must show real policy change toward Iran. "If you (Obama) say you are after change ... change your method, change your literature and your way," Ahmadinejad said.

(Editing by Dominic Evans)

Terra/Reuters