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White House: 'We are very concerned' about Iran's nukes

Story Highlights

• Iran has reached "industrial level" nuclear production, Ahmadinejad says
• Iranian president says program to be used for "expansion of peace and stability"
• Iran could reconsider Non-Proliferation Treaty membership, chief negotiator warns
• U.S. State Department spokesman says Iran is defying international community
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TEHRAN, Iran (CNN) -- Iran's president announced Monday that his country has begun production of nuclear fuel on an "industrial level."

"Iran has succeeded in development to attain production at an industrial level," Mahmoud Ahmadinejad said in a speech at the Natanz uranium enrichment facility in central Iran.

The announcement came on the first anniversary of the start of uranium enrichment at the plant.

President Bush contends Iran is using its program to develop nuclear weapons.

Leaders of European nations have expressed similar alarm.

"We are very concerned," said White House spokesman Gordon Johndroe. "We call on the Iranian regime to comply with its obligations to the IAEA (International Atomic Energy Agency) and U.N. Security Council."

Monday, Ahmadinejad said, "With great pride, I announce that as of today, our dear country, Iran, is among the countries of the world that produces the industrial level of nuclear fuel." (Watch the 'concerned' reaction to Iran's nuclear news Video)

Iran: Nuke program 'irreversible'

Iran's leader vowed it will be used for energy "and for the expansion of peace and stability," adding that the goal of "progress" for Iran is "irreversible."

Ahmadinejad's speech came on what Iran called its National Nuclear Feast, designed to send a message to the world that the nation will not halt its nuclear activities despite calls for it to do so from many Western governments, particularly the United States, and sanctions imposed by the U.N. Security Council.

The IAEA -- the U.N. nuclear watchdog -- has said it cannot confirm that Iran's nuclear activities are for peaceful purposes. IAEA officials say Iran has failed to cooperate with inspectors.

U.S. State Department spokesman Sean McCormack called Monday's events "another signal Iran is in defiance of the international community."

He added that it shows the international community has been right in levying sanctions.

McCormack called it a "missed opportunity" for Iran, arguing Iranian leaders should have announced they were suspending their uranium enrichment program in response to the international concerns.

No one disputes Iran's right to a peaceful nuclear energy program, he said, and added, "There is a negotiation alternative."

But Ahmadinejad said Monday there has been "no evidence of violation in our activities."

"Despite the cooperation of our country and its transparency, despite the fact that our measures are legal, we have witnessed controversy created by some powers who benefit from the nuclear fuel cycle themselves," he said.

He committed much of his speech to slamming the "enemies" of Iran, who he said don't want to see it make "progress."

"They have even resorted to the Security Council and tried to turn it into a tool to prevent the nuclear development of the Islamic Republic of Iran."

Before Ahmadinejad spoke, Vice President Gholamreza Aghazadeh said, "We have gathered, thanking Almighty God for the introduction of the uranium enrichment program to the industrial phase, and once again we thank almighty God for allowing us to attain industrial enrichment plans."

Iran gave no indication it intends to capitulate to international demands.

At schools throughout the country, bells were rung Monday in celebration, and children chanted slogans, such as: "Nuclear energy is an inalienable right of the Iranian nation" and "No country has the right to deprive Iran of its indisputable right."

"The Iranian nation is in need of nuclear fuel cycle," state-run news agency IRNA said.

At the United Nations in New York, Secretary-General Ban Ki-Moon held out hope for a resolution to the dispute.

"I sincerely hope that even at this time when (the) Iranian government is undergoing Security Council sanctions, that it could engage in dialogue with the international community," he said.

"This is very important for any country to fully comply with the Security Council resolutions. I urge (the) Iranian government to do so."

Copyright 2007 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report.

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Ahmadinejad said "progress" for Iran was "irreversible."

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