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Edition: U.S. Article Video Save Email Print Reprints Most Popular Most Shared Study links sugary soft drinks to pancreas cancer 12:00am EST Super Bowl win was destiny for Saints, says MVP Brees 07 Feb 2010 Haiti protesters denounce aid corruption, hoarding | Video 10:27am EST UPDATE 2-U.S. Northeast digs out of monster snowstorm 20 Dec 2009 G7 talk on Greece fails to soothe investors, euro dips | Video 7:47am EST Study links sugary soft drinks to pancreas cancer 12:00am EST Costa Rica elects Chinchilla first woman president 12:55am EST Super Bowl win was destiny for Saints, says MVP Brees 07 Feb 2010 Daily pill helped cure osteoporosis in mice, rats 1:04am EST China shuts down largest hacker training website 07 Feb 2010 Iran plans major nuclear expansion over next year Hossein Jaseb and Fredrik Dahl TEHRAN Mon Feb 8, 2010 9:45am EST Related News Revolution day will put Iran's disunity on show 4:58am EST Related Video Iran spurns nuclear offer Sun, Feb 7 2010 Iranian President Mahmoud Ahmadinejad gestures while speaking during the opening ceremony of the 2nd National Festival of Innovation and Prosperity in Tehran, February 8, 2010. Credit: Reuters/Morteza Nikoubazl TEHRAN (Reuters) - Iran said it will start making higher-grade reactor fuel on Tuesday and will add 10 uranium enrichment plants over the next year in a nuclear expansion sure to stoke tensions with the West. World The statement by Iran's Atomic Energy Organization head Ali Akbar Salehi followed orders from President Mahmoud Ahmadinejad on Sunday for work to begin on producing atomic fuel for a Tehran research reactor. It may increase Western suspicions that Iran's nuclear program is aimed at making bombs, a charge Tehran denies. Iran informed the U.N. nuclear agency in a letter on Monday about its decision to enrich uranium at its Natanz plant to a level of 20 percent for use in the reactor producing medical isotopes, compared with the 3.5 percent it now makes. "Today we handed over the letter," Iran's envoy to the International Atomic Energy Agency (IAEA), Ali Asghar Soltanieh, told Iran's Arabic-language al Alam state television. The letter said 20 percent enrichment would start on Tuesday with the aim of later converting it into fuel and it invited U.N. inspectors to monitor the process, Soltanieh told Reuters. Salehi earlier told al Alam: "Iran will set up 10 uranium enrichment centres next year." The Iranian year starts in March. Iran mooted such a plan late last year but gave no time frame. The announcements raise the stakes in Iran's dispute with the West, although experts doubt Tehran has the technical ability to launch 10 new plants so soon and believe it is finding it harder to obtain crucial components due to U.N. sanctions. Analysts say it may be a negotiating tactic to prod the West into accepting Iranian terms for a nuclear fuel swap. But it could backfire if it only serves to make Western powers determined to push for more sanctions against Iran, the world's fifth-largest oil exporter, over its refusal to suspend enrichment. TURMOIL Ahmadinejad said Iran remained open to a proposed nuclear fuel exchange with world powers, which they hope would minimize the risk of Iran developing atomic bombs. Iran says it wants only to generate electricity from low-level enrichment. Salehi suggested production of the material would be halted if Iran could import 20 percent uranium, the degree of purity required for conversion into special fuel needed to run a Tehran nuclear medicine reactor, Iran's stated goal for the move. Tehran has voiced readiness to send low-enriched uranium (LEU) abroad in a swap for fuel for the reactor, due to run out of it later this year. Such a deal would remove the bulk of potential nuclear bomb material Iran has stockpiled. But amendments Iran has demanded to the U.N.-drafted plan have been rejected by the United States, France and Russia because they would allow Iran to keep much of its LEU reserve. "Iran would halt its enrichment process for the Tehran research reactor any time it receives the necessary fuel for it," Salehi said. Germany said on Monday Iran's announced intention to crank up nuclear work showed it was not cooperating with the IAEA, which has called for a nuclear suspension and more inspections. Ahmadinejad's contradictory signals over the last week -- first expressing readiness to send LEU abroad and then announcing that Iran would start producing 20 percent fuel itself -- also could be a sign of Iran's political turmoil. Analysts believe Ahmadinejad may want to secure a swap deal with the international community to boost his legitimacy after a disputed election last year but is hampered by political rivals who oppose any LEU export as a threat to national security. "PUSHING DIRT AROUND" Opposition supporters are expected to try to revive their protests over the June election on Thursday, when Iran marks the anniversary of the 1979 Islamic revolution, despite repeated warning of a firm response by the authorities. "The Iranian nation will show on (February 11) how it will punch the faces of all the world's arrogants -- America, Britain and Zionists -- with its unity," Supreme Leader Ayatollah Ali Khamenei said on Monday, state television reported. Iran's move to make 20 percent fuel itself may heighten suspicions that its real aim is higher-enriched uranium for atom bombs, since only France and Argentina -- not Iran -- are known to have the technology to yield fuel for medical isotopes. A senior diplomat close to the IAEA said enrichment to 20 percent was legal under Iran's non-proliferation accord with the agency. "Natanz would need less than a few months to start making the 20 percent enriched uranium, (although) Iran will face significant technical hurdles in manufacturing it," said David Albright, head of the Institute for Science and International Security. The bigger question was whether Iran planned to make a small amount of enriched uranium for its research reactor or was trying to convert most of its 3.5 percent stock of enriched uranium into 20 percent material. "By doing so, it would be going most of the rest of the way to weapon-grade uranium," Albright told Reuters. Mark Fitzpatrick, a proliferation expert at London's International Institute for Strategic Studies, said the plan for 10 more enrichment sites in short order was "a farcical bluff." "It is hard-pressed today even to keep the centrifuges installed at Natanz running smoothly," Fitzpatrick told Reuters. (Additional reporting by Parisa Hafezi, Reza Derakhshi and Hashem Kalantari in Tehran and Madeline Chambers and Paul Carrel in Berlin; Writing by Mark Heinrich; Editing by Michael Roddy) World More from Reuters Toyota readies global Prius recall TOKYO (Reuters) - Toyota Motor Corp is preparing a recall of its new Prius hybrid car in Japan as early as Tuesday, followed by similar steps in the United States, Europe and other markets, a source familiar with its plans said. | Video CIT sets John Thain's salary at $6 million per year Wall Street falters on debt worries | Video Federal agencies to close Monday after blizzard | Video Xstrata reinstates dividend, upbeat on outlook SMFG Q3 profit surges, keeps forecast » More Top News Analysis: The "Toyota Way" Manufacturers that adopted Toyota's system are asking whether its philosophy remains the industry's gold standard after the massive recall. Full Article Toyota looking to outside quality input Timeline: Major global auto recalls Autos Analysis: Compromise or political ploy? President Obama has a campaign strategy for Democrats in the November elections: Calling the Republican's bluff. Full Article John Brennan lashes out at Republicans GOP invited to healthcare session Politics © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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