Uranium can be used as nuclear reactor fuel or as the core for atomic warheads, depending on the degree of enrichment.

Running smoothly, 3,000 centrifuges could produce enough nuclear material for a bomb within 18 months. But Iran insists it is only working to produce fuel for reactors that will generate electricity and says it has a right to conduct enrichment for such purposes under the Nuclear Nonproliferation Treaty.

In addressing whether Iran was complying with IAEA requests, the report appeared to come down on the side of the US. "Iran has not provided the Agency with all the information, access to documents and access to individuals necessary to support Iran's statements" that its activities are purely peaceful in intent, it said.

"The Agency is of the view that Iran may have additional information, in particular on high explosives testing and missile related activities which ... Iran should share with the agency," the report said. It was referring to two alleged sets of tests that IAEA officials say could be linked to a nuclear weapons program.

The allegations of nuclear military programs "remain a matter of serious concern", the report said. Suggesting fears of clandestine weapons activities remain, it added, "Clarification of these is critical to an assessment of the nature of Iran's past and present nuclear program."

Iran already rejected evidence provided by the US and other IAEA board members on alleged weapons programs in February, but then promised to revisit the issue before the agency's next board meeting in a week.

Intelligence received by the IAEA in its investigations, as well as from the US and other agency board member nations, suggest Iran experimented with an undeclared uranium enrichment program that was linked to a missile project and drew up blueprints on refitting missiles to allow them to carry nuclear warheads.

The intelligence also suggested Iran was researching construction of an underground site that apparently could be used to test fire nuclear bombs and ordered "dual use" equipment from abroad that could be part of an atomic weapons program.

Additionally, Iran possesses diagrams showing how to mold uranium metal into the shape of warheads.

Its nuclear work has been under IAEA investigation since 2003, when a dissident Iranian group revealed the existence of a clandestine enrichment program.

(China Daily via Agencies May 27, 2008)