Iran to make higher-grade nuclear fuel

Iran's nuclear agency chief says the Islamic Republic has begun making higher-grade nuclear fuel.

Iranian state television reported the process began in the presence of inspectors from the UN nuclear watchdog agency.

Iran currently has no nuclear power plants able to use the low-enriched uranium it has already produced.

It also lacks the technology to convert the 20-percent pure uranium into the fuel rods needed to run the research reactor.

Ali Salehi, Head of Iran's Atomic Energy Org., said, "It's said in the western media Iran doesn't have the capability to enrich uranium to 20 percent. They should just wait and see. We'll start tomorrow. It isn't a problem."

Ali Akbar Salehi, head of Iran's Atomic Energy Organisation, looks on while attending a news conference in Tehran September 29, 2009. REUTERS/Morteza Nikoubazl/Files