The state government has provided a $10 million loan to SKM’s receivers to help clean up thousands of tonnes of recycling stockpiled in warehouses around Melbourne.

Moorabool was one of 33 Victorian councils left without a recycling provider when SKM was placed into administration last month, sending thousands of tonnes of recyclables to landfill.

Last month, six large warehouses filled with stockpiled recycling waste were located across Derrimut, Sunshine, Laverton and Campbellfield.

The government money will help SKM clean up the stockpiles and resume collecting recyclable waste.

The clean-up began last week and the company is expected to resume processing waste within the next five weeks. Its Laverton site will be the first to return to operation.

SKM’s collapse threw Victoria’s kerbside recycling collections into chaos with several councils, including Moorabool, forced to send thousands of tonnes of recycling to landfill.

The loan comes on top of the government’s $6.6 million financial relief package handed out to councils directly affected by the closure of SKM.

Minister for Energy, Environment and Climate Change Lily D’Ambrosio said the kerbside recycling system is set to be overhauled.