VIDEO - Iranian President Mahmoud Ahmadinejad inaugurated the country's first nuclear fuel production complex on Thursday.
Ahmadinejad has announced the plant's opening during a ceremony in the central city of Isfahan.
Speaking about Iranian nuclear progress, Ahmadinejad said in a televised speech that new centrifuges "with a capacity a few times higher than the existing centrifuges" had been tested.
Iran would be ready for talks with the West if they are based on respect and justice, Ahmadinejad added.
"The Iranian nation has from the beginning been after logic and negotiations, but negotiations based on justice and complete respect for rights and regulations," Ahmadinejad said in his speech.
'Iran running 7,000 centrifuges'
The plant will produce pellets of uranium oxide to fuel the heavy-water research reactor, which is scheduled to be completed in 2009 or 2010.
"This is the first nuclear fuel complex ... 100% Iranian," said Vajihollah Asadi, a manager at the complex near the central town of Isfahan.
He said the plant would produce fuel for Iran's Arak heavy water reactor.
Ahmadinejad visiting plant (Photo: AP)
The head of Iran's national security and foreign policy commission, Alaeddin Boroujerdi, told reporters in Isfahan: "Today Iran practically proved that its (nuclear) fuel cycle has been completed and naturally suspension of uranium enrichment cannot be discussed with Iran."
Iran is now running 7,000 uranium enrichment centrifuges, a senior official said on Thursday.
Gholamreza Aghazadeh, head of Iran's Atomic Energy Organization, also said it had obtained the technology to produce more "accurate" centrifuges, which are used to enrich uranium.
Referring to the inauguration of the nuclear fuel production plant he said in a televised speech: "Today we praise ... The accomplishment of the last stage of the nuclear fuel cycle."
Clinton doubtful of reported progress
US Secretary of State Hillary Clinton said on Thursday she did not view the latest Iranian claims about its nuclear program as a rebuff to US overtures to engage Iran.
"We do not attribute any particular meaning, with respect to the range of issues that we are looking to address with the Iranians, from this particular statement," Clinton said at a news conference when asked about Iran's statement that it was now running 7,000 enrichment centrifuges.
She also cast doubt on Iranian claims of major progress in its nuclear program. "We don't know what to believe about the Iranian program. We've heard many different assessments and claims over a number of years," she said.
Following Iran's declarations Thursday, the Defense Minister's Office issued a statement saying: "The defense establishment is closely watching the nuclear developments in Iran.
"The inauguration of the new plant proves and strengthens the international need to monitor the Iranian nuclear project."
Roni Sofer contributed to the report