A top Iranian official announced Sunday night that the Islamic Republic has resumed work on a key part of its nuclear fuel cycle, apparently a step back from its pledge to suspend all uranium enrichment-related activities.  

"The experimental phase of the Isfahan processing installation has begun and by the end of this phase, in the next 20 days, experimental production at this facility will start," state media quoted Gholam Reza Aghazadeh, vice president and chairman of Iran's Nuclear Energy Organization, as saying on Monday.

The announcement coincides with the arrival on Saturday of the International Atomic Energy Agency (IAEA) experts for inspection of Iran's nuclear sites in Isfahan and Natanz.

"The uranium processing plant in Isfahan will produce all raw materials for the fuel cycle," Aghazadeh added.

The Isfahan installation is listed by IAEA as a uranium conversion facility, where materials that can be used to produce enriched uranium are refined.

In a deal with the IAEA struck late last year, Tehran agreed to suspend uranium enrichment and all related activities while experts from the UN nuclear watchdog carry out inspections in the country.

Top Iranian officials have reiterated that Tehran agreed to suspend the nuclear fuel process aimed at confidence building and showing its sincerity to the international community, while reserves its right to resume the activity at any time it seems appropriate.

The United States has repeatedly accused Iran of using the atomic energy program as a cover for developing nuclear weapons, a claim that Tehran has firmly denied. Iran has defended that its nuclear program is only for peaceful purpose.

(Xinhua News Agency March 29, 2004)