A retention licence confers upon the holder exclusive rights to apply for a mining licence over the area in respect of which the retention licence is issued.

This licence can only be granted to a holder of an exploration licence where he or she has identified a mineral deposit which is potentially of commercial significance during exploration with in the exploration area and the mineral deposit cannot be developed immediately by reason of adverse market conditions, economic factors, or other factors beyond reasonable control of the holder of the exploration licence, which are of a temporary nature. Such a person may apply for a retention licence which shall confer upon that person exclusive rights to apply for a mining licence. During the retention period, the holder of a retention licence is required to continue to carry out feasibility studies and to pay annual mineral rent for the whole area covered by the retention licence.

An application for the retention licence is also made to the minister atleast three months before the expiry of an exploration licence and must among others indicate the period applied for, minerals in respect of which retention is sought, feasibility study and assessment by an accredited consultant on the extent and prospects for recovery, and the commercial and economic significance of the mineral deposit concerned among others.

The licence may be granted for a period not exceeding three years subject to renewal for a single period not exceeding two years. Where the minister is satisfied that commercial mineral development of an area that is subject to a retention licence has become possible, may require the holder to immediately apply for a mining licence and failure of which the retention licence may be cancelled.