A plan to sift the rubble from the Christchurch earthquakes will be one of the biggest recycling projects in the Southern Hemisphere.
An estimated 4.5 million tonnes of demolition waste has been produced by the earthquakes, with most of it being dumped at the Burwood landfill.
Authorities hope to recycle about a million tonnes of aggregate, concrete, timber, metal, plaster board and plastics from the rubble.
Environment Minister Nick Smith says the Government will contribute $2.5 million toward new machinery to sift the rubble and recycle as much as possible.
Transpacific Waste Management will carry out the project, which will cost $9.5 million.
General manager Gareth James says the money will be spent on specialised machinery and a new recycling plant.
The remaining waste will be sorted through, with any contaminated rubble being disposed of at the Kate Valley landfill.