To add quotes and background

By François Murphy

VIENNA, June 24 (Reuters) - The International Atomic Energy Agency (IAEA) will conduct inspections in Iran soon following an interim agreement between Washington and Tehran, but work is still underway to put the mechanisms in place , IAEA Director General Rafael Grossi said on Wednesday.

The two countries signed a 14-point memorandum of understanding last week that, in principle, includes many details for ending the war. The interim agreement paves the way for 60 days of talks to focus on more complex issues, such as those related to Iran's nuclear program.

"The inspections will definitely take place," Grossi said at a press conference in Japan, an audio recording of which was posted online by the International Atomic Energy Agency.

He added, referring to the discussions with Tehran, "We will work very soon to determine the implementation mechanisms — the dates, procedures, and locations."

Iran has not allowed the International Atomic Energy Agency, which is responsible for monitoring its nuclear program, to return to its most sensitive nuclear sites since the US and Israel bombed them in June of last year.

The agency conducted inspections of other sites, but the inspections were suspended after the US-Israeli attacks on Iran on February 28.

* Highly enriched uranium is a key issue in the talks

The fate of Iran's highly enriched uranium is a key issue in the talks. This includes material enriched up to 60 percent, a level close to the 90 percent enrichment required for nuclear weapons.

Grossi said, "Paragraph 8 of this Memorandum of Understanding explicitly states that nuclear activities to be carried out in relation to nuclear materials and facilities will be subject to the supervision of the International Atomic Energy Agency."

He added, "Of course, in order to do that, we have to conduct an inspection. Whether it happens the day after tomorrow, or in a week, or in ten days, it is important but not crucial. So, it will inevitably happen. Of course, if (Iran) wants to abide by the agreement. If it doesn't want to, that's another matter."

Iran has not informed the International Atomic Energy Agency (IAEA) of the quantity or location of the enriched uranium that survived the attacks. The IAEA estimates that Iran possessed 440.9 kilograms of uranium enriched to up to 60 percent before Israel launched its first attack on June 13 of last year. According to IAEA standards, this amount is sufficient to produce ten nuclear weapons if enriched to a higher degree.

Grossi said the agency believes Iran was keeping more than 200 kilograms of the material stored in a tunnel complex in Isfahan, central Iran, which was attacked but appears not to have been badly damaged.