The reactor will produce plutonium as a by product but the real threat comes from the centrefuges which can enrich uranium to a high enough degree to create a good old fashioned A Bomb. We also have no idea how much uranium has been enriched to weapons grade already. This is nothing but another Iranian delaying tactic. Irans political future is dependent on it getting nuclear weapons to bully its neighbors and the west and after the billions of dollars worth of investment in the program, the sanctions and tough talk we have seen for the past 6 years there is no reason at all to take Iran seriously now. Tell Obama and the west things they want to hear but in reality do nothing but talk nice and act tough.
UN: At least 1,332 Iraqis killed by violence in July (AP)
from the article: Report: Iran ready to begin immediate nuclear fuel swap talks