No Silver Lining For Salvors Rules UK Supreme Court

In an appeal concerning the interpretation of s.10(4)(a) of the State Immunity Act 1978, the Supreme Court in Argentum Exploration Ltd v Republic of South Africa [2024] UKSC 16 has denied salvage to the Claimant, rejecting its contention that cargo onboard a sunken vessel was in use or intended for use for commercial purposes.

The precious cargo of the SS TILAWA ("the Vessel") lay marooned at depths of 2.5km in the Indian Ocean for nearly 75 years before its rescue by the Claimant salvor, Argentum Exploration Ltd ("Argentum"), in 2017. The freight, comprised of 2364 bars of silver purchased by South Africa for the predominant purpose of being made into coin, was making its way from Bombay to Durban prior to the Vessel's sinking in 1942 by enemy forces. As of 2020, the Silver had an estimated value of approximately $43 million.