Main Page/Salvage Firm Loses to South Africa Over $43M Treasure

But a 'confidential settlement' has been reached over silver found on SS Tilawa, sunk in WWII

By Arden Dier, Posted May 9, 2024 12:40 PM CDT

South Africa, Salvage Company Reach Deal Over $43M Treasure

A salvage company has lost its claim to $43 million in silver recovered from a passenger cargo ship that sunk during World War II, the UK's highest court ruled Wednesday, siding with South Africa's government. The Japanese navy sunk the SS Tilawa, later dubbed the "Indian Titanic," in the Indian Ocean in November 1942, killing 280 of about 950 people on board, per CBS News.

The 2,364 bars of silver that the Union of South Africa had purchased from India to turn into coins, also went down with the ship. They were recovered in 2017 by British company Argentum Exploration, owned by hedge fund manager Paul Marshall. Argentum shipped the silver to England, initially claiming to be the rightful owner.

The company later acknowledged South Africa to be the rightful owner but claimed maritime salvage law meant it could be paid for recovering the treasure, even when recovery wasn't requested. Basically, Argentum wanted South Africa to pay the value of the silver. In Britain's High Court, South Africa argued it was immune from the claim because the silver wasn't being used for commercial purposes when the ship sank.

But the court disagreed, finding the silver was indeed intended for commercial uses. The Court of Appeal agreed with that initial ruling, prompting South Africa to appeal to the UK's Supreme Court, where it received its desired outcome.

In a unanimous decision, the court found the ship was being used for commercial purposes, but not the bars of silver. "Cargo sitting in the hold of a ship is not being used for any purpose, commercial or otherwise," the court ruled, per CBS. Argentum's managing director, Ross Hyett, said it was "an important judgment clarifying the law on sovereign immunity," per the Financial Times.

An associate at the law firm that represented South Africa's government added that the two sides reached "a confidential settlement" shortly before the judgment was announced. "I can't comment on where the silver is now," the associate said, per FT. The settlement is subject to a nondisclosure agreement, according to Business Insider. (More treasure stories.)