Reuters

Iran's nuclear chief, Ali-Akbar Salehi, cuts a ribbon during a ceremony to take delivery of locally produced yellowcake, a uranium concentrate powder, at the UCF plant in Isfahan.

Geneva/Tehran - Iran announced what it called a major step forward in its nuclear programme on Sunday, showing determination to pursue it a day before talks in Geneva with world powers which fear Tehran may be seeking atom bombs.

Nuclear energy chief Ali Akbar Salehi said Iran would use domestically produced uranium concentrates, known as yellowcake, for the first time at a key nuclear facility, cutting its reliance on imports of the ingredient for nuclear fuel.

“This means that Iran has become self-sufficient in the entire fuel cycle,” Salehi said.

Western analysts say Iran sometimes exaggerates its nuclear advances to gain leverage in its stand-off with the West.

The announcement appeared timed to show Iran will not back down in a long-running battle over its nuclear programme before the meeting on Monday and Tuesday in Geneva where six powers are seeking assurances its atomic ambitions are peaceful.

Salehi told a televised news conference that the announcement meant “we will be taking part in the negotiations with strength and power”.

He said the Geneva talks were for the benefit of the other countries, not Iran.

“We want to create a graceful solution out of the political deadlock for those who have pressurised us.”

White House National Security Council spokesperson Mike Hammer said the announcement was not unexpected since Iran has been trying to develop its own uranium programme for years.

“However...this calls into further question Iran's intentions and raises additional concerns at a time when Iran needs to address the concerns of the international community,” Hammer said.

Before the Geneva talks, Hammer said, the United States and its allies are looking to see if Iran will enter into discussions “with the seriousness of purpose required to begin to address international concerns with its nuclear programme”.

Iran says its nuclear programme is aimed at power generation while the West suspects Tehran seeks weapons capability, and has tightened sanctions on the Islamic state in recent months.

Western diplomats say the sanctions are hurting Iran's oil-dependent economy despite the Tehran leadership's denials of any such impact, and they hope this will persuade them to enter serious negotiations about its nuclear programme.

In Bahrain, General James Mattis, the Commander of US Central Command, told a Gulf security conference he was “nowhere near pessimistic yet” about the prospects for resolving the Iranian nuclear issue with diplomacy, as opposed to using force, a so-called Plan B.

“The idea that we would have to focus early on a plan B would actually undercut the commitment to plan A, which is to solve this using all diplomatic and economic means. I say this without any naivety; I recognise the role of military force, but at the same time I am nowhere near pessimistic yet,” he said.

Asked upon his arrival in Geneva whether he was optimistic about the talks, Iranian nuclear negotiator Saeed Jalili said: “Everything depends on the other party's attitude.”

“Is there any need to do that?” said another Iranian official, who declined to be named, when asked whether Iran's enrichment activities would be discussed at the meeting.

Asked whether Sunday's yellowcake announcement was a signal that Iran would press ahead with its activities, he said: “Of course.”

Western powers want Iran to suspend uranium enrichment activity, which can produce fuel for nuclear power reactors or provide material for bombs if refined to a higher degree.

President Mahmoud Ahmadinejad has said Iran's enrichment will not be discussed in Geneva, though it is the central concern of the six powers - the United States, Russia, China, France, Britain and Germany - that will be present. - Reuters