But the North's ability to put the five megawatt reactor back to work will depend on the availability of fresh fuel rods to power it, and that remains uncertain.
The US-Korea Institute at Johns Hopkins School of Advanced International Studies is basing its conclusions on analysis of commercial satellite images, the latest taken May 22.
North Korea announced it plans to restart the reactor at Nyongbyon in early April, amid a litany of threats toward the US and South Korea after it faced tougher international censure over its latest nuclear and rocket tests. The reactor was shuttered in 2007 under the terms of a disarmament agreement.
"North Korea may not be testing long-range missiles or nuclear weapons right now but its WMD program is moving ahead," said former State Department official Joel Wit, who is editor of the institute's web site, 38 North. The abbreviation WMD stands for weapons of mass destruction.
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An analysis being published by 38 North says a new system to provide cooling for the reactor appears almost finished, and two underground water tanks are now in place next to a building that would hold spent fuel. External activity suggests that work is continuing inside the reactor building.
North Korea is believed to have a supply of fuel rods, but many of them may need adapting for use in the reactor, making it uncertain whether the North is indeed in a position to restart the reactor.
Analysts now put the North's arsenal at four to eight plutonium bombs. They also suspect it is making fuel for uranium bombs, but they don't know how much.