Tronox Announces Contract Extension with Amabutu Logistics

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

On November 23, Tronox’s KZN Sands site in South Africa announced the extension of its contract with Amabutu Logistics (Pty) Ltd to transport its heavy mineral concentrate (HMC) between the Fairbreeze Mine and Central Processing Complex plant, as well as transport the final product to the Port of Richards Bay and Grindrod Bulk Terminal.

Lee-Ann Govender, Tronox director-supply chain management, says Amabutu Logistics has added value to Tronox through its uncompromising commitment to service delivery and operational efficiency.

“Amabutu 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,” she said.

But this is about more than just business. Tronox’s contract renewal with Amabutu Logistics demonstrates Tronox’s continued focus on community development in the areas in which it operates.

“We are very pleased that this transaction will 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,” said Mpho Mothoa, Tronox South Africa Managing Director. “The confidence we have shown toward the partnership with Amabutu Logistics—and all other community contracts—is a testimony to what real rural community development means.”

When it was established in 2014, Amabutu Logistics was set up as a 51% black-owned organisation, where the 49% shareholder was Sunroy Pty (Ltd). As of January 1, 2021, Amabutu Logistics will be 100% black owned, consisting of 46% black-women ownership. This ownership structure is in line with Tronox’s goal of further empowering women through procurement opportunities beyond the Mining Charter III requirements, which pertain to growth of South Africa’s local mining supply chain, support supplier development and create jobs.

With a core purpose of social upliftment, Amabutu Logistics has focused on creating valuable opportunities through employment and supplier development programmes for the past six years. The company has offered bursaries for learners from the participating communities and provided school uniforms to the needy. To date, the company has created over 90 jobs for men and women from the local communities. Furthermore, 13 people from six surrounding communities have successfully completed the Code 14 driver-training programmes and are now employed by Amabutu Logistics and the local municipality. The extension of the contract with Tronox will allow for two new positions to be created in the Marketing and CSI departments, and these roles are said to be earmarked for black women from the local communities. 

“We are extremely proud of Amabutu Logistics’ success and the value that they have and will continue to bring to the local economy,” Mothoa said. “We are committed to building similar and successful host community enterprises where we operate.”