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IAEA: Iran working to enrich uraniumReport says group can't verify scope, nature of nuclear program
 The Natanz facility at the center of Iran's nuclear program. RELATED
YOUR E-MAIL ALERTS(CNN) -- Iran has begun enriching uranium on a very limited scale and is slowly building up its enrichment activities, according to a confidential International Atomic Energy Agency report that was obtained Monday by CNN. The report, which will be formally submitted to the IAEA's board of governors at its meeting next week, says that the Iranians are currently testing a 20-centrifuge cascade of machines and actually enriching uranium in a 10-centrifuge cascade. Thousands of centrifuges must be in operation to produce enough enriched uranium for nuclear weaponry. Earlier this month, the 35-nation board of governors agreed to refer Iran to the U.N. Security Council based on this upcoming report. The Security Council will use the report to decide what action, if any, will be taken against Iran. Iran announced last month that it intended to begin nuclear research at its Natanz facility and, according to the report, began tests of a single centrifuge on February 11, graduating to 10 centrifuges four days later and to 20 centrifuges on February 22. The 12-page report reflects the frustrations of the IAEA and the West in dealing with Iran, which says its nuclear program is strictly for peaceful purposes. The West, and particularly the United States, fears that the Islamic republic intends to hide an arms program behind a peaceful program of energy production. "The agency is not at this point in time in a position to conclude that there are no undeclared nuclear materials or activities in Iran," said the report, written by IAEA Director-General Mohammed ElBaradei. "It is regrettable and a matter of concern that the uncertainties related to the scope and nature of Iran's nuclear program have not been clarified after three years." In addition to the enrichment activities, the report reiterates a pair of questions that have remained unanswered -- exactly where Iran obtained the centrifuges it is now using to enrich uranium and the source of trace nuclear contamination found during inspections of nuclear facilities. Negotiations between Iran and the "EU-3" -- Britain, France and Germany -- failed to reach an agreement over the nuclear program, prompting the push for Security Council referral. To get approval from Russia and China, the resolution was amended to delay any action by the Security Council against Iran until after the IAEA report is presented to the board next week. China and Russia, both members of the Security Council, have said they prefer to resolve the situation through diplomatic means and that sanctions would be counterproductive. Russia, one of Iran's largest trading partners, is trying to head off the nuclear dispute and avoid sanctions. On Sunday, the two countries announced progress in their talks about a Russian proposal to enrich Iranian uranium in Russia. But Monday, officials from the United States, Russia and Germany expressed skepticism about the negotiations. Russian Foreign Minister Sergey Lavrov said Tehran has so far rejected a contingency in his country's offer to set up a joint enrichment facility -- that Iran cease its own enrichment activities, The Associated Press reported. "Iran does not really have a new strategy" and is seeking to "drive a wedge into the international community, but this will not succeed," German Foreign Minister Frank-Walter Steinmeier told the AP. In Washington, State Department spokesman Adam Ereli said he was aware of no new deal and characterized the reports as "more chaff being thrown up by the Iranians ahead of the board of governors' meeting." The Russians and Iranians said the talks would continue until the IAEA meeting next Monday. The IAEA report also raised concern about the purported "Green Salt Project," which was previously linked by U.S. intelligence to a possible nuclear weapons program. The Iranians say the allegations are baseless. CNN's Matthew Chance contributed to this report. Copyright 2006 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report. 
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