A compaction device is removably connected to a refuse receiver and is positioned on a skid mounted frame which is dragged by a utility vehicle through an underground mine for the collection of waste material collected from the mining operations. The waste material is deposited into a compaction chamber and compacted in the receiver. Where electric power is not accessible for operation of the compaction device, hydraulic power is supplied from the hydraulic power takeoff on the utility vehicle. The receiver filled with compacted waste material is disconnected from the compaction device and lifted from the support frame onto the utility vehicle. The receiver is transported out of the mine for pick-up of the compacted waste material by a commercial waste hauler. By collecting and compacting waste material in the mine, the frequency of hauls of waste material from the mine and the associated costs are substantially reduced.