Yukon's environmental screening agency is recommending a proposed tungsten mine on the border with N.W.T. be approved.

North American Tungsten wants to build the Mactung underground mine near the Macmillan Pass and North Canol Road north of the company's existing Cantung mine.

The Yukon Environmental and Socio-Economic Assessment Board says the mine would have significant negative effects on the environment but says those can be mitigated.

Its recommendations cover a wide range of activities and include a strong focus on protecting water resources in the area.

The Yukon government has the final say on approving the mine.

The company says building the mine would cost more than $350 million.