The country "will witness the appearance of a light water reactor power plant relying on its own nuclear fuel in the near future in the 2010s", the Korean Central News Agency (KCNA) said in a lengthy commentary.

It gave no details of the project.

Experts say light water reactors are more resistant to proliferation than gas-graphite types such as the North's Yongbyon reactor, but they can also be used to produce plutonium for nuclear weapons.

The North agreed to shut down existing atomic programmes under a 2005 six-nation nuclear disarmament deal. But it quit the forum almost one year ago and vowed to restart production of weapons-grade plutonium.

The other parties in the 2005 deal agreed to "respect" the North's desire to build a light water reactor but gave no firm commitments.

KCNA, in its commentary, criticised what it called a deluge of "despicable" reports suggesting serious weaknesses in the communist state.

It noted that "wild rumours" about the health of leader Kim are circulating, along with reports of serious food shortages and economic difficulties due to last November's currency revaluation.

The agency also noted "misinformation" that it is smuggling missiles and other weapons and bolstering its nuclear capacity.

"The scenario for vituperation seems to know no bounds," it said, adding that the aim of "hostile forces" is to portray the regime as unstable so as to deter foreign investment.

The agency said that after strengthening the nuclear deterrent, the government since last year had been focusing on the economy and improving living standards through actively seeking foreign investment.

Widespread reports say the bungled currency change worsened already serious food shortages and sparked rare internal unrest.

Kim, 68, suffered a stroke in August 2008 and some reports say he also has chronic kidney problems.

The North refuses to return to the six-party nuclear talks until the United States makes a commitment to discuss a permanent peace pact, and until United Nations sanctions are lifted.

The US says the North must first return to the disarmament talks and show it is serious about denuclearisation.

KCNA said the Obama administration was reluctant to take the initiative for fear of being seen as weak before the mid-term elections.

It said the US justified its doctrine of "strategic patience" towards the North by suggesting that the government may not last.

But the North "has a firm foundation of the independent national economy, which remains solid despite any storm from outside".

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