North American Tungsten plans to shift its proposed Mactung mine from the N.W.T. side of the border into the Yukon to simplify the regulatory process, it says.
The Mactung tungsten deposit, which straddles the border between the two northern territories, was first targeted for development in the 1970s but high tungsten prices have renewed interest it.
The original plans called for the project to be built partly in the Yukon and partly in the Northwest Territories, said Stephen Leahy, the company's chief executive officer.
But now the company has decided it would be better to construct the mill and tailings ponds entirely on the Yukon side of the boundary so that it only has to deal with one regulatory regime, he said.
"Recently, because the only access really is from Yukon and dual regulatory bodies were not of the size we can deal with I think, we are looking at a design of all of the mine infrastructure essentially just over the border into Yukon," said Leahy.
North American Tungsten already operates the Cantung tungsten mine, which is south of the Mactung deposit, but within the Northwest Territories boundary.
It currently produces about four per cent of the world's tungsten, which is used in light bulbs and weapons.
A large Chinese mining company recently offered to buy a stake in North American Tungsten but the deal has not yet been finalized.