A British company has been closed down after being caught in an apparent attempt to sell black-market weapons-grade uranium to Iran and Sudan.
Anti-terrorist officers and the MI6, Britain's foreign intelligence service, are investigating a wider British-based plot allegedly to supply Iran with material for use in a nuclear weapons program.
One person has already been charged with attempting to proliferate "weapons of mass destruction."
During the 20-month investigation, which also involved the domestic British Security Intelligence Service and Customs and Excise, a group of Britons was tracked as they obtained weapons-grade uranium from the black market in Russia. Investigators believe it was intended for export to Sudan and on to Iran.
A number of Britons, who are understood to have links with Islamic terrorists abroad, remained under surveillance. Investigators believe they have uncovered the first proof that al-Qaeda supporters have been actively engaged in developing an atomic capability.
The British company, whose identity cannot be disclosed for legal reasons, has been wound up.
A Customs and Excise spokes-man said: "We continue to investigate allegations related to the supply of components for nuclear programs including related activities of British nationals."
It is not clear whether all of those involved in the alleged nuclear conspiracy were aware of the uranium's ultimate destination or of any intended use.
British agents believe Russian black-market uranium was destined for Sudan, described as a "trans-shipment" point.
The alleged plot, however, was disrupted early last year, before the nuclear material reached its final destination.
Roger Berry, chairman of Parliament's Quadripartite Committee, which monitors arms exports, said: "With the collapse of the Soviet Union there was always the question over not just uranium but where other WMD [weapons of mass destruction] components were going and how this could be controlled. Real credit must go to the enforcement authorities that they have disrupted this. The really worrying aspect is that if one company is involved, are there others out there? The international authorities have been trying desperately hard to keep a lid on something like this, but this shows the real risk."
Politically, the allegations hold potentially huge ramifications for diplomatic relations between the West and Tehran.
Already, tensions are running high between Iran, the US and the EU over the true extent of Iran's nuclear ambitions. Iran refuses to suspend its nuclear program in the face of mounting pressure, arguing its intent is entirely peaceful and solely aimed at producing power for civilian use.
Investigators are understood to have evidence that Iran was to receive the uranium to help develop a nuclear weapons capability.
"They may argue that the material is for civilian use but it does seem an extremely odd way to procure uranium," Berry said.
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