South Africa wins battle for US$43M sunken silver bars

Finders are not always keepers, as proven by the United Kingdom’s Supreme Court ruling on who owns about US$43 million worth of silver bullion recovered from a sunken cargo ship.

The U.K.’s top court said on Wednesday the treasure recovered by a British marine exploration firm belonged to South Africa.

Argentum Exploration found and retrieved 2,364 bars of silver in 2017 from the SS Tilawa, which was sunk by a Japanese submarine en route to South Africa during the Second World War. 

The ruling means that Argentum cannot claim compensation from South Africa for recovering the silver. 

“The parties concerned have now reached a settlement, which brings the matter to a close,” Ross Hyett, managing director of Argentum, said in an emailed statement.

The passenger ship SS Tilawa, also known as the “Indian Titanic,” was sunk by Japanese torpedoes on Nov. 23, 1942.  In addition to carrying more than 900 people, of which 280 died, the vessel held 2,364 silver bars that had been procured by the then Union of South Africa to be minted into coins. 

The valuable cargo remained inaccessible until 2017, when a specialized salvage vehicle from Argentum, a British company owned by hedge fund executive Paul Marshall, successfully retrieved the silver. It was worth US$43 million as of 2020.

The SS Tilawa was first discovered at the bottom of the Indian Ocean in 2014, before being salvaged in a secret expedition three years later. Credit: SS Tilawa Foundation

The bars were taken to the U.K. and claimed as Argentum’s property. The company later conceded South Africa owned the bars, but claimed compensation for recovering them. The finders argued that since salvaging is voluntary, they could request payment even though South Africa had not asked them to retrieve the silver.

Wednesday’s ruling said South Africa is protected by sovereign immunity against Argentum’s claim, which means the company cannot pursue further legal action against the country’s government.

Marshall, one of the U.K.’s most successful investors, owns several businesses including Argentum and uses his personal wealth to finance media outlets such as Unherd and GB News.