When you think how much cargo is lost at sea every year to weather and of course pirates, this is small beer for insurance companies. To strip, test and re-certify any potentially useable parts would be prohibitively expensive in labour costs alone.
It's like when my customers send me old equipment back for rebuilding and upgrading, I end up quoting less for a new unit due to the labour costs of stripping the old units down.
So my guess is, loco goes to meet the Rotweiler behind the scrappie's fence.
PS
They could always send it up to Barrow Hill as a conversation or conservation piece.
