Kathmandu – Nepal Foreign Minister Shisir Khanal on Tuesday dismissed as “baseless” reports claiming that the Nepali Army and the U.S. Army had signed an agreement to extract uranium in Mustang district.
Responding to queries from lawmakers during a meeting of the National Assembly Khanal said, the government has not entered into any contract or agreement with any domestic or foreign entity for uranium mining or any other mineral extraction in Mustang.
He said the government had already refuted the claims, which were circulated by some digital media platforms describing them as incorrect and misleading.
Khanal reiterated that Nepal would not enter into any agreement that contradicts its long-standing non-aligned foreign policy and the principles of Panchsheel.
The foreign minister said preliminary geological studies have indicated the possibility of uranium deposits in Mustang.
However, he stressed that no extraction project has been approved and that further scientific exploration would be carried out through the Department of Mines and Geology in accordance with existing laws and procedures.
His remarks came amid speculation on social media alleging that Nepal had reached an agreement with the U.S. Army to develop uranium resources in Mustang, a claim that the government has categorically denied.
