Transmitting power from Muskrat Falls could have consequences for an already-threatened caribou herd, a federal environmental assessment has concluded.
The Canadian Environmental Assessment Agency found that the Muskrat Falls project on its own would have "minor, adverse, but non-significant environmental effects" on Red Wine caribou.
But the CEAA found the impact could become more serious when the impact of Muskrat Falls is combined with other factors.
"The agency therefore concludes that the project, when cumulative environmental effects are taken into account, is likely to cause significant adverse environmental effects on the Red Wine Mountains herd, even if the project itself will only minimally contribute to these effects," the agency noted.
The Red Wine Mountains herd is listed as threatened under the Species at Risk Act.
The CEAA conducted an environmental assessment of the construction of a tranmission link from the hydro project in Labrador to Newfoundland.
The agency is now asking for public comment.
A decision on federal approval for the project is expected later this summer.