Project vice-president Gilbert Bennett says the work near the lower Churchill River is making way for construction of a power house and spillway.
There are currently seven contractors and 220 workers on site, including those providing security, medical services and environmental services.
Bennett says once the land is cleared, work will begin on the adjacent reservoir.
As well, a right-of-way will be cleared between Muskrat Falls and Churchill Falls to the west, making way for transmission lines.
He says construction of the subsea cable system linking Labrador and Newfoundland will begin later this year.