A machining waste metal recycling machine has an in-feed hopper. The hopper uses paired augers to move the waste metal through the hopper to a cutting and transporting auger. The hopper augers are powered independently from each other, and may be individually reversed or reversed as a group to clear jams. In the event a jam is not cleared through one or more reversal cycles, the remaining augers may be operated to clear the hopper, thereby avoiding the need for manual unloading. Within the hopper are one or more shear bars that are provided to sever bunches or bundles of machining waste and thereby clear tangles which might otherwise jam the augers. The cutting and transporting augers ultimately feed a reciprocating compactor having a movable gate with one or more grooves for controlled drainage of machining oil and other liquid, as the machining waste metal is compressed into pellets.