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Foreign Minister Shisir Khanal speaking at the National Assembly meeting. Photo: Keshab Gurung/TRN

Foreign Minister Shisir Khanal has made it clear that it is a baseless rumour that the Nepali Army and the US Army has had a contract to extract uranium in Mustang district.

Responding to queries raised by the lawmakers in National Assembly meeting today, Minister Khanal ruled out having any form of contract or agreement with any parties on mine extraction in the Mustang area.

Minister Khanal also mentioned that concerned authorities of the government have already refuted such baseless claims disseminated as news in some digital platforms.

He expressed commitment to not reaching any agreement that contravene with Nepal's non-aligned foreign policy and principle of Panchasheel.

The Minister said that preliminary studies have shown possibility of uranium mines in Mustang and that there was a need of further exploration and that the department of mines and geology will initiate necessary processes in this regard.