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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America Iran defiant as Obama warns of 'consequences' AFP - Wednesday, November 18 Send IM Story Print Two Iranian technicians at the zirconium production plant in Isfahan. Iran has vowed to continue enriching uranium despite a wrist slap by the UN nuclear watchdog, as US President Barack Obama warned of "consequences" if Tehran refused to come clean on its atomic programme. TEHRAN (AFP) - – Iran vowed to continue enriching uranium despite a wrist slap by the UN nuclear watchdog, as US President Barack Obama warned of "consequences" Tuesday if Tehran refused to come clean on its atomic programme. The International Atomic Energy Agency (IAEA) raised suspicions on Monday that Iran could be hiding more atomic facilities and complained that it was not fully in compliance with its nuclear obligations. It also demanded further information about the purpose of a previously secret nuclear site which when disclosed in September triggered outrage in the West. Tehran's envoy to the IAEA, Ali Asghar Soltanieh, dismissed the constant stream of IAEA reports as "repetitive and tedious" and said Iran would continue uranium enrichment. "Iran will continue to exercise its right to peaceful use of nuclear energy, including enrichment," he said in reaction to the IAEA report. In the report, the IAEA said it had been told by Iran in a letter that the new site near the Shiite holy city of Qom should be operational in 2011, heightening concerns Tehran is edging closer to developing a nuclear bomb. "Iran's declaration of the new facility reduces the level of confidence in the absence of other nuclear facilities under construction and gives rise to questions about whether there were any other nuclear facilities in Iran which (have) not been declared to the agency," it said. The report came as world powers await a response from Iran to an IAEA brokered deal to ship Iran's low-enriched uranium stock out of the country. Enrichment lies at the centre of fears about Iran's nuclear programme as the process, which makes nuclear fuel, can also be used to make atomic bombs. Iran vehemently denies seeking a bomb, insisting it only wants enrichment for peaceful purposes and to make fuel for power plants although its first and much-delayed plant, which is being built by Russians, is yet to come on line. Despite three sets of UN sanctions for its refusal to halt enrichment, Iran insists it has a right to the sensitive work as a signatory to the nuclear Non-proliferation Treaty. Iran has been enriching uranium for several years at a plant in the central city of Natanz, and maintains the newly unveiled second enrichment plant near Qom was a back-up unit should Natanz be bombed. The United States and Iran's arch-foe Israel have never ruled out a military option to thwart the Islamic republic's nuclear drive. In the wake of the latest IAEA report, US President Obama warned in Beijing on Tuesday of "consequences" if Iran failed to be more transparent on its atomic programme. "Iran has an opportunity to present and demonstrate its peaceful intentions but if it fails to take this opportunity, there will be consequences," Obama said after talks with Chinese leader Hu Jintao. "On this point our two nations and (other global powers) are unified," said Obama, who has been pursuing a stick-and-carrot approach on Iran, offering engagement at the same time as threatening sanctions. UN Security Council permanent members -- Britain, China, France, Russia and the United States -- plus Germany seek a negotiated end to Iran's nuclear stand-off. China and Russia, which have close energy and trade ties with Iran, have in past been reluctant to impose tougher sanctions on the Islamic republic. But in recent weeks Obama has won strong backing from Russian counterpart Dmitry Medvedev, who said on Sunday that Tehran risked sanctions, possibly on its petrol imports, if the nuclear crisis continued. However Russian Foreign Minister Sergei Lavrov said on Tuesday talks with Tehran have still not failed. "I would say that it is premature to say that these efforts have not been crowned with success," Russian Foreign Minister Sergei Lavrov said in Moscow. Iranian Oil Minister Masoud Mirkazemi boasted on Tuesday that Tehran can fight any sanctions, expected largely to target its petrol imports, by hiking domestic production by 14 million litres per day to 58.5 million litres with immediate effect. "This symbolic move... is to show that they (Western powers) can not use this (petrol) as a leverage against the Islamic republic," Mirkazemi said. 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