The International Atomic Energy Agency (IAEA) says recent releases of steam and water indicate North Korea may be operating a nuclear reactor that can produce plutonium needed for atomic bombs.

The U.N. nuclear watchdog agency has seen evidence that the nuclear plant in North Korea is active and operational. Citing a satellite photo it obtaine, the reactor at the Yongban nuclear complex was seen to be releasing water and steam.

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In a statement released by IAEA on its website, the agency said North Korea's nuclear power plant operations is still an issue worthy of attention. The agency vowed to continue to monitoring updates on the reactor, according to Reuters.

The IAEA has seen signs of activity in the nuclear power plant since august 2013, after the country announced that it will be increasing its nuclear arms production capabilities. The activity in the reactor may be a sign that it is now producing fuel rods, a source of plutonium, which is used to create nuclear weapons.

After six years of inactivity, North Korea announced that it will restart the five-megawatt  reactor in April 2013, the report said.

North Korea halted the operations of the reactor in 2008 as a part of its efforts to foster good ties with the U.S., South Korea, Japan, Russia and China. But in January, U.S. Director of National Intelligence James Clapper assessed the reactor and reported that North Korea possibly began plutonium production.

The U.S. State Department released a statement on Thursday saying North Korea made a wrong move when it reactivated the nuclear reactor. It clearly negates North Korea's previous declaration of support for denuclearization, the U.S. added.

The Institute for Science and International Security (ISIS) announced in June that North Korea finally decided to renovate the reactor to produce nuclear weapons. However, because of insufficient information, they cannot determine the amount of plutonium that the reactor produced, the report stated.

The IAEA thinks North Korea revived the reactor as one of the steps towards achieving its nuclear ambitions. However, the agency cannot confirm this hunch with the satellite imagery as its only basis.

TagsNorth Korea, nuclear reactor, Nuclear Power Plant, IAEA