Belgian authorities stop firm exporting to Iran

Tehran Times:

Aug 5, 2005

BRUSSELS (AFP) -- A Belgian-based company has been denied a license to export materials to Iran to build a phosphoric acid factory over fears it could be used to enrich uranium, authorities in Brussels said on Thursday.

Phosphoric acid is part of "fertilizer for use in agriculture, but with a few modifications it could be used to enrich uranium for a nuclear program," said a spokesman for the Brussels region external relations ministry.

The move comes amid rising tensions between Iran and the so-called European Union three -- Britain, France and Germany – as they negotiate the future and scope of the Islamic Republic's nuclear program.

The ministry decided in mid-July to refuse the license to the Lavalin Europe company, a subsidiary for Canadian engineering firm SNC-Lavalin, after consulting industry experts and federal government authorities.

In a letter to Lavalin explaining the decision, the ministry said "all of the foreign interlocutors expressed great concern over the delivery of this production facility to Iran."

"The complex process of negotiation between the EU-3 and Iran has reached a crucial phase and maximum care is counseled," it said, adding it had refused the license "given the international context and the real danger of misuse."

Lavalin Europe's legal adviser confirmed the move but could not immediately say what action the company would be taking.