Retention Leases act as holding titles and are awarded for non-commercial resource discoveries. Applicants must demonstrate the resource is not currently commercially viable but is likely to become so within the next 15 years. The initial term of a Retention Lease is five years and may be renewed provided it still meets the non-commerciality criteria.
Depending on circumstances, further exploration work may be undertaken. However, the lessee is obliged to undertake re-evaluation studies on the commercial viability of the resource as required from time to time by the Minister.
When the discovery is deemed commercial, the Retention Lease must be converted to a Production Licence.
