Iran says starts making 20 pct nuclear fuel

The Islamic Republic, which denies its programme has military aims, announced on Sunday it would produce uranium enriched to a level of 20 percent for a Tehran research reactor making medical isotopes for cancer patients.

This followed a failure to agree terms for a proposed nuclear swap with major powers, under which Iran would send most of its low-enriched uranium abroad in return for such fuel.

"Enrichment to 20 percent started in the Natanz facility under the supervision of the (International Atomic Energy Agency)," state television quoted Iranian nuclear agency chief Ali Akbar Salehi as saying.

It said he made the statement at the site of Iran's enrichment plant in Natanz. Salehi earlier on Tuesday told Reuters that preparatory work had started and that production would officially be launched in the afternoon.

Iran currently enriches uranium to a level of 3.5 percent while 80 percent or more is needed for a nuclear bomb.

The Pentagon said the United States wants the U.N. Security Council to approve a resolution "within weeks, not months," laying the ground for new sanctions against Iran over its nuclear programme. They would be the fourth set of sanctions.

Despite Iranian denials, Western powers fear Iran is enriching uranium with a view to producing nuclear weapons.

Salehi said Iran had set up a chain of 164 centrifuges, used to refine uranium, to produce the 20 percent fuel. He said production capacity is 3 to 5 kg a month, above the Tehran reactor's needs of 1.5 kg, ISNA news agency reported.

RUSSIA, CHINA DIFFER