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Tronox awards its second-largest contract to local business, Amabutu Logistics

Tronox KZN Sands announced the extension of its contract with Amabutu Logistics (Pty) Ltd to transport its Heavy Mineral Concentrate (HMC) and Slimes between the Fairbreeze Mine and Central Processing Complex plant and further transport of the final product to the Port of Richards Bay and Grindrod Bulk Terminal; making this transaction Tronox's second-largest contract since its inception.


“Amabuthu Logistics has grown from strength to strength from contract inception and has truly added value to our business through its uncompromising commitment to service delivery and operational efficiency. With this extension, Amabuthu Logistics has demonstrated that supplier innovation and continuous improvement in the execution of the services will result in a mutually rewarding relationship for both parties and cement their role as a supplier of choice,” says Lee-Ann Govender, Tronox Supply Chain Management Director.


The Flagship community development initiative has exceeded expectations and has further empowered people from the six (6) communities in Zululand, KwaZulu Natal: consisting of Dube, Macambini, Mkhwanazi, Nzuza, Somopho and Ogagwini; as well as a consortium of local businesspeople. "The success of Amabutu Logistics has demonstrated that with the correct leadership, and where companies are willing to take community businesses by the hand and exercise patience with them, a lot can be achieved by these community businesses in participating in the mainstream economic activity," says Mpho Mothoa, Tronox’s South Africa Managing Director.


Amabutu Logistics was founded on Tronox’s ambition of creating real shared value in the communities in which it operates by empowering and developing previously disadvantaged individuals and ultimately uplifting the broader local community. When it was established in 2014, Amabutu Logistics was setup as a 51% black-owned organisation, where the 49% Page 2 shareholding was with Sunroy Pty (Ltd). This was to ensure that there was proper skills development transfer from an experienced transporting company.


According to Sam Mthembu, Amabutu Logistics CEO, “Tronox had an uncompromising vision to ensure that adequate skills transfer was done. To this end, we were constantly evaluated and measured on the skills acquired through the mentorship provided by the late Martin van Rooyen, the then CEO of Sunroy Logistics.”


As of 01 January 2021, Amabutu Logistics will be 100% black-owned, consisting of 46% blackwomen ownership. This ownership structure is in line with Tronox’s goal of further empowering women through procurement opportunities beyond the Mining Charter III requirements. “We are very pleased that this transaction will also sustain employment and further create additional jobs and opportunities for small local businesses through the multiplier-effect and thus building mutually rewarding relationships with our host communities,” says Mothoa.


With a core purpose of social upliftment, Amabutu Logistics has for the past six (6) years focused on creating valuable opportunities through employment, supplier development programmes; as well as offering bursaries for learners from the participating communities and providing school uniforms to the needy. To date, Amabutu Logistics has created over 90 jobs for men and women from the local communities. Furthermore, 13 people from the six (6) communities have successfully completed the Code 14 driver-training programmes and are now employed by Amabutu Logistics and the King Cetshwayo Municipality. According to Mthembu, the extension of the contract with Tronox will allow for two new positions to be created in the Marketing and CSI departments. These roles are said to be earmarked for black women from the local communities.


According to Mthembu, since inception, the Trust Fund set up for the communities has assisted people with bursaries, driver training programmes; as well as attending and participating in the Royal Reed Dance. The six-year extension will see further estimated investment of R9.2 million towards community upliftment programmes in the 6 identified communities. “Everyone must benefit from this transaction. The funds invested back into our communities will ensure that many of our people benefit and are empowered,” says Mthembu.

For Media Enquiries: Nozuko Basson Regional Manager: Communities and Corporate Affairs Cell: 078 823 8388

Email: Nozuko.Basson@tronox.com


About Tronox

Tronox is one of the world’s leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals; and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals. With nearly 7,000 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit Tronox.com.

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