However the Minerals Council South Africa said it was disappointing the underlying foundation of competitiveness - namely a cost-effective and consistent electricity supply - was not addressed in the statement.

"The 523% increase in the electricity price in the last decade has resulted in Eskom's electricity price to large industrial customers becoming globally uncompetitive, forcing the closure or mothballing of over 40% of South Africa's ferroalloy production," the council said.

"A chrome ore export tax does not address the fundamental competitiveness issue (electricity) facing the ferrochrome industry and may have material unintended consequences on the independent chrome ore producers.

"Export taxes are generally a blunt instrument that have material unintended consequences."

Chrome ore is a key ingredient in stainless steel and South Africa last year supplied 12.5 million tonnes to China - 83% of China's total chrome imports, Reuters reported.

The minerals council said it was engaging with the Department of Mineral Resources and Energy, Treasury and other departments to seek solutions to enhance the competitiveness of the sector, from independent to integrated chrome producers.

Mineral resources and energy minister Gwede Mantashe tweeted last week that expanding the country's energy generation capacity was "a priority intervention to support a rapid economic rebound", referring to the country's economic recovery plan which the council has said did not go far enough.