In a system and method for processing recycled asphalt pavement or aggregate for asphalt production, a heating and drying unit includes a trough positioned within an external housing. A hollow auger is positioned in the trough, such that the recycled asphalt pavement or aggregate received at a first end of the trough is transported to a second end of the trough via rotation of the hollow auger. The trough is constructed of two or more sections to allow for thermal expansion, with only one end of each of the two or more sections connected to the external housing. Heated air is introduced into the trough via an inlet and exits the trough via an outlet. Heated oil is pumped through the hollow auger, entering via an inlet and exiting via an outlet. The heated air and heated oil raise the temperature of the recycled asphalt pavement or aggregate.