North Korea said on Saturday that it would never agree to talks on denuclearisation, but would be open to negotiations for arms reduction.

Pyongyang said it will not give up its nuclear programme until the entire world is denuclearised, according to the North’s main newspaper Rodong Sinmun.

“There may be talks between us and the United States for the sake of arms reduction, but there will never be talks for denuclearisation,” it said.

“Our position is clear. Never dream of denuclearisation on the Korean Peninsula before denuclearisation of the world is realised.” The United States and South Korea have called on Pyongyang to resume the six-party talks over its nuclear programmes to ease tensions on the peninsula.

The negotiations involving both Koreas, the U.S., Japan, Russia and China, stalled in 2009.

On Thursday, Pyongyang demanded an end to UN sanctions and the US-South Korea military drills as conditions for a dialogue.

Seoul and Washington dismissed the demand as unacceptable and “illogical.” North Korea has been issuing almost daily threats since the UN imposed tougher sanctions against the communist state after it conducted a third nuclear test in February.

It also blocked entry to an industrial park run jointly by the two countries in Kaesong, located just north of the border, halting operations at more than 120 factories.

A South Korean auto parts supplier said Saturday it had lost a contract with an Indian company after it failed to deliver supplies due to the closure of Kaesong, the Yonhap news agency reported.

Daewha Fuel Pump Industrial Ltd said the Indian firm has demanded it to either pay back money equivalent to its investment or return equipment from its factory in the Korean industrial park.