Summarizing: Based upon a review of AEOI reports it would appear that the fuel is NOT for the Arak HWRR reactor - but rather this is for production of fuel plates for the TRR. Therefore while manufacturing of nuclear fuel for the Tehran research reactor (TRR) is a technological accomplishment it does not bring them closer to a nuclear weapon capability. (Although perhaps earlier testing had begun on the Arak HWRR fuel pin - and that would be significant!)
Based upon the IAEA reports there is a chronology on the development of the fuel for both the Arak HWR and the TRR. Summarizing:
11/9/10 No equipment installed at the Fuel Manufacturing Plant (FMP) for TRR fuel fabrication
3/16/11 AEOI announces plans to start production of natural UO2 for IR-40 research reactor (i.e. Arak heavy water reactor).
5/18/11 No UO2 had been produced at the UCF (Uranium conversion facility) although the process had started
5/18/11 No equipment had been installed for the conversion of the 20% enriched UF6 into U3O8 for the TRR fuel fabrication
5/31/11 Iran informs IAEA that a fresh fuel rod of natural UO2 manufactured at FMP would be shipped to TRR for irradiation and post Irradiation analysis.
8/23/11 Iran begins to irradiate a prototype fuel rod containing UO2 that had been manufactured at FMP
10/22/11 Iran had started to install some equipment for fuel fabrication for TRR. AEOI confirms that five fuel plates containing natural U3O8 had been produced at the R&D lab at FMP for testing purposes.
Therefore going through the chronology - you might deduce that the AEOI completed fuel plates for the TRR made of natural U3O8 and placed them in the TRR reactor for testing per
isna.ir/isna/NewsView.aspx?ID=News-1922330&Lang=E.
Based upon a review of AEOI reports it would appear that the fuel is NOT for the Arak HWRR reactor - but rather this is for production of fuel plates for the TRR.
Therefore you would say that while manufacturing of nuclear fuel for a research reactor is a technological accomplishment it does not bring them closer to a nuclear weapon capability.
Exerpts and links:
From the IAEA:
REPORT 1: 25. On 9 November 2010, the Agency carried out an inspection and a DIV at the Fuel
Manufacturing Plant and confirmed that Iran has not yet started to install equipment for TRR fuel
fabrication.28
www.iaea.org/Publications/Documents/Board/2010/gov2010-62.pdf
REPORT 2: 31. In a letter dated 16 March 2011, Iran informed the Agency that during the period 4–6 April 2011 it
intended to start the production of natural UO2 for IR-40 Reactor fuel. On 18 May 2011, the Agency carried
out a DIV at UCF and observed that, although the process to produce such UO2 had started, none had yet
been produced. The Agency also confirmed that no UF6 had been produced at UCF since 10 August 2009.
The total amount of uranium produced at UCF since March 2004, therefore, remains 371 tonnes in the form
of UF6 (some of which has been transferred to FEP and PFEP), and remains subject to Agency containment
and surveillance. During the DIV, the Agency observed that Iran had not yet begun the installation of
equipment for the conversion of the UF6 enriched up to 20% U-235 into U3O8 for the fabrication of fuel for
TRR.35
32. On 11 May 2011, the Agency carried out an inspection and a DIV at FMP and confirmed that Iran had
not yet started to install equipment for TRR fuel fabrication.36
www.iaea.org/Publications/Documents/Board/2011/gov2011-29.pdf
IAEA Board Report, 25 February 2011
REPORT 3: 36. Fuel Manufacturing Plant: As previously reported, in a DIQ for FMP dated 31 May 2011, Iran
informed the Agency that a fresh fuel rod of natural UO2 manufactured at FMP would be shipped to TRR
for irradiation and post-irradiation analysis. On 15 October 2011, the Agency carried out an inspection and
a DIV at TRR and confirmed that, on 23 August 2011, Iran had started to irradiate a prototype fuel rod
containing natural UO2 that had been manufactured at FMP. In a letter dated 30 August 2011, Iran
informed the Agency that “for the time being” it had no plans to conduct any destructive testing on the rod
and that only non-destructive testing would be conducted at TRR.
37. On 22 October 2011, the Agency carried out an inspection and a DIV at FMP and confirmed that Iran
had started to install some equipment for the fabrication of fuel for TRR.32 During the inspection, the
Agency verified five fuel plates containing natural U3O8 that had been produced at the R&D laboratory at
FMP for testing purposes.
www.iaea.org/Publications/Documents/Board/2011/gov2011-65.pdf IAEA Board Report , 18 November 2011