Henry Moore's Reclining Figure was likely melted down and sold as scrap metal, according to British police. (Associated Press)

British police say they have figured out what happened to a two-tonne Henry Moore sculpture stolen in 2005, sparking a global hunt for the thieves.

The massive bronze sculpture, known as Reclining Figure, was taken from the 28-hectare estate that is home to Moore's former studios, barns and gallery in Much Hadham, Hertfordshire — about 50 kilometres north of London — on Dec. 15, 2005.

At the time, police had surmised that the theft of the 3.4-metre-long sculpture, created 1969 to 1970, was ordered by a private art collector.

Now, they say it was probably melted down and sold for no more than £1,500 ($2,678 Cdn) as scrap metal.

"We have evidence and information suggesting it was cut up on the night, then taken to a location where it was irreparably damaged before it was shipped abroad," Det. Chief Insp. Jon Humphries, of Hertfordshire police, told The Observer newspaper.

"In my mind we've managed to kill off the mystery as much as is possible."

According to police, the statue was taken to a scrap dealer shortly after three men, using a crane and a flatbed truck, took it on Dec. 15. It was then moved to a scrapyard in Essex and then shipped abroad, likely to the East.

Charles Hill, former head of Scotland Yard's art and antiques division, says a group of travellers —nomadic people sometimes referred to as gypsies, although that is considered a derogatory term — engineered the heist.

Investigators say a massive rise in the theft of metal sculptures around the world can be attributed to the soaring demand for certain metals due to China's industrial expansion.

The Public Monuments and Sculpture Association of Britain estimates thefts of public sculptures have gone up 500 per cent over the past three years.

The loss is monumental for The Henry Moore Foundation. Reclining Figure is one of the artist's best-known works. Moore died in 1986.

Richard Calvocoressi, director of the foundation, says security measures at the estate have been "considerably increased" since the theft.