“I would like to inform you that there is no truth to the public discussion that an agreement has been reached between the Nepali Army and the US Army to mine uranium metal in Mustang district.” Foreign Minister Shisir Khanal said that on July 1, 2026, standing before the National Assembly, and Kantipur carried his words that day.
Lawmakers had pressed him over a story that had been spreading on social media and some digital news platforms: that the Nepali Army and the U.S. Army had struck a deal to extract uranium in the mountain district. Khanal called it baseless. The Rising Nepal quoted him calling it a rumour, and KathmanduPati reported that the government has signed no contract of any kind, with a domestic or a foreign party, for uranium or any other mineral extraction in Mustang.
What the government says it has done
Khanal said the authorities had already refuted the claims publicly. Nepal Views reported him adding that the government has not even started any process of the kind, and that the information in circulation was misleading.
He also tied the denial to foreign policy. Nepal, he said, would not enter any agreement that cuts against its long-standing non-aligned stance or the Panchsheel principles of peaceful coexistence. Answering a question from National Assembly member Bhuvan Bahadur Sunar, he said the government stays committed to the constitutional provisions on the use of the country’s natural resources.
Uranium itself is another matter
The minister did not say there is nothing in the ground. Preliminary geological studies, he said, point to the possibility of uranium deposits in Mustang. That is a long way from a mine. According to KathmanduPati, he stressed that no extraction project has been approved and that further scientific exploration would go through the Department of Mines and Geology, under existing laws and procedures. The Rising Nepal and epardafas both reported that more exploration and assessment are needed before any future decision.
Border questions on the same day
The session also covered the frontier with India. Answering lawmaker Bishnu Bahadur Bishwakarma, Khanal said a bilateral technical committee has completed demarcation across most of the border. Technical teams have yet to finalize it in Limpiyadhura, Lipulekh, Kalapani and Susta. “We are clear that these territories belong to Nepal,” he told the House, citing historical records, evidence and maps, and said Kathmandu wants to settle the differences through bilateral diplomatic negotiations.
Khanal said differences between neighbours are natural, but that they should be resolved peacefully, through dialogue built on historical facts. He added that a Boundary Working Group and related mechanisms continue to meet regularly on the open issues.
Sources
- No agreement has been reached with anyone for uranium mining in Mustang: Foreign Minister Khanal – Kantipur
- No contract with any foreign entity on uranium extraction in Mustang: Foreign Minister Khanal – The Rising Nepal
- Foreign Minister denies claims of Nepal-US Military agreement on Uranium mining in Mustang – Nepal Views
- Nepal dismisses claims of US army uranium deal in Mustang – KathmanduPati
- No Agreement Signed on Mustang Uranium Mining, Foreign Minister Clarifies – epardafas
