The side track will be called the Pike 29 Memorial Track, in memorial to the 29 men killed in the November 19 2010 disaster.
Westreef Services, from Westport, and Nelmac Ltd, from Nelson, will work with the Department of Conservation on construction, including about 50km of new track.
"The Natural Construction Company of Westport will build the two 20-bunk huts, the Moonlight Tops and Pororari huts, with this work due to start in September," Smith said.
The Department of Conservation projects up to 2500 walkers a year, and 1000 mountain bikers.
Pike River has not been operating since a gas explosion killed the 29 workers. Their remains have never been removed because of concerns about high methane levels.
After meeting the families for the first time in February, Prime Minister Bill English asked the state-owned mining company to leave the West Coast mine unsealed and to investigate the use of drones or robots to re-enter the mine.
Labour and New Zealand First have committed to re-entering the mine if possible, and suggested there has been a "cover up" after footage from the mine was published by Newshub earlier this year.