Algerian army stages "final assault" on gas plant

ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army on Saturday carried out a final assault on al Qaeda-linked gunmen holed up in a desert gas plant, killing 11 of the Islamists after they took the lives of seven more foreign hostages, a local source and the state news agency said.

"It is over now, the assault is over, and the military are inside the plant clearing it of mines," a local source familiar with the operation told Reuters.

The state oil and gas company, Sonatrach, said the militants who attacked the plant on Wednesday and took a large number of hostages had booby-trapped the complex with explosives.

The exact death toll among the gunmen and the foreign and Algerian workers at the plant near the town of In Amenas close to the Libyan border remained unclear.

Earlier on Saturday, Algerian special forces found 15 burned bodies at the plant. Efforts were under way to identify the bodies, the source told Reuters, and it was not clear how they had died.

Sixteen foreign hostages were freed on Saturday, a source close to the crisis said. They included two Americans, two Germans and one Portuguese. Britain said fewer than 10 of its nationals at the plant were unaccounted for.

The attack on the plant swiftly turned into one of the biggest international hostage crises in decades, pushing Saharan militancy to the top of the global agenda.

INTERNATIONAL CRISIS

It marked a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

The captors said their attack was a response to the French offensive. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the week since France launched its strikes.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified gas compound when it was seized before dawn on Wednesday by Islamist fighters who said they wanted a halt to the French intervention in neighboring Mali.

Hundreds escaped on Thursday when the army launched a rescue operation, but many hostages were killed.

Before the final assault, different sources had put the number of hostages killed at between 12 and 30, with many foreigners still unaccounted for, among them Norwegians, Japanese, Britons and Americans.

The figure of 30 came from an Algerian security source, who said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.

The U.S. State Department said on Friday one American, Frederick Buttaccio, had died but gave no further details.

Leaders of Britain, Japan and other countries have expressed frustration that the assault was ordered without consultation and officials have grumbled at the lack of information.

France's defense minister, Jean-Yves Le Drian, declined to criticize the Algerian response to the crisis, however.

"The Algerian authorities are on their own soil and responding in the fashion they can. The overriding mission is to tackle the terrorists," he told France 3 television.

The base was home to foreign workers from Britain's BP, Norway's Statoil, Japanese engineering firm JGC Corp and others.

VETERAN JIHADIST

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

France says the incident proves its decision to fight Islamists in neighboring Mali was necessary.

The field commander of the Islamist group that attacked the plant is a veteran fighter from Niger called Abdul Rahman al-Nigeri, Mauritanian news agencies reported.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in a civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Sonya Hepinstall and Mark Trevelyan)

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SNCF to launch grant framework for social entrepreneurs

SINGAPORE: To facilitate the growth of co-operatives, the Singapore National Co-operative Federation (SNCF) will launch a comprehensive grant framework that gives budding social entrepreneurs the support they need to set up new co-operatives to deal with social needs that have yet to be met.

Existing co-operatives will also be able to use the grant to improve productivity, expand their services, and for staff development.

This was announced by SNCF Chairman Chan Tee Seng at an awards ceremony on Saturday to recognise 22 co-operatives, co-operators and supporters for their contributions toward improving the welfare of Singaporeans.

The awards commend those who have helped grow the Singapore Co-operative Movement, which includes areas such as thrift and loan, aged care, childcare, employment, and insurance.

Minister in the Prime Minister's Office Lim Swee Say and former Singapore President SR Nathan were also among those recognised as co-op champions for the support they have rendered to the co-operative movement.

Mr Lim praised the role of co-operatives here, calling them both competent and competitive.

"Here at home, our co-operatives and social enterprises are doing your best as active citizens. It's in your DNA to do good -- passion to help others to live a better life. It's in your DNA to do well -- competent and competitive, to be financially viable. How can we help others, if we're not able to help ourselves? Most of all, it's in your DNA to do more, and to do more together," he said.

Mr Lim urged individual co-operatives here to work as a network, and in partnership with other like-minded enterprises so as to meet the ever-increasing needs of the community.

As a way to encourage co-operatives to come together, the SNCF also plans to facilitate and co-pay a shared services platform that will allow these co-operatives to collaborate and develop shared services in the areas of IT, marketing, book-keeping and accounting.

-CNA/ac

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Lalu bats for Rahul Gandhi as PM candidate

KOLKATA: RJD leader Lalu Prasad Yadav today batted for Congress general secretary Rahul Gandhi to be the Prime Ministerial candidate for the 2014 general elections, and said Gujarat chief minister Narendra Modi's "dream of becoming PM will never come true".

"Modi's prime ministerial dream is not going to come true... His dream of coming to Hastinapur will never materialise," he said, retorting, "What is wrong with Rahul Gandhi, tell me?"

Prasad was talking to reporters on the sidelines of a FICCI Ladies Organisation programme here.

A dozen people were being projected as Prime Minister, but it did not mean that they would become the one, he said.

He also ruled out formation of a third front during the Lok Sabha polls in 2014 and said, "I have been in politics for a long time now and I can tell you a third party has never come to power, nor will it ever come to power...

"There will be only two compartments, communal compartment and secular compartment, and the secular compartment will form the government," he said.

Prasad praised Congress President Sonia Gandhi's leadership and her move for making Manmohan Singh the Prime Minister in 2004.

"She is not a foreigner. She is the daughter-in-law of India. She has proved her large heartedness by refusing the post of prime minister in 2004," he said.

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Food service vulnerable to food allergy lawsuits

WASHINGTON (AP) — People with severe food allergies have a new tool in their attempt to find menus that fit their diet: federal disabilities law. And that could leave schools, restaurants and anyplace else that serves food more vulnerable to legal challenges over food sensitivities.

A settlement stemming from a lack of gluten-free foods available to students at a Massachusetts university could serve as a precedent for people with other allergies or conditions, including peanut sensitivities or diabetes. Institutions and businesses subject to the Americans With Disabilities Act could be open to lawsuits if they fail to honor requests for accommodations by people with food allergies.

Colleges and universities are especially vulnerable because they know their students and often require them to eat on campus, Eve Hill of the Justice Department's civil rights division says. But a restaurant also could be liable if it blatantly ignored a customer's request for certain foods and caused that person to become ill, though that case might be harder to argue if the customer had just walked in off the street, Hill says.

The settlement with Lesley University, reached last month but drawing little attention, will require the Cambridge, Mass., institution to serve gluten-free foods and make other accommodations for students who have celiac disease. At least one student complained to the federal government after the school would not exempt the student from a meal plan even though the student couldn't eat the food.

"All colleges should heed this settlement and take steps to make accommodations," says Alice Bast, president and founder of the National Foundation for Celiac Awareness. "To our community this is definitely a precedent."

People who suffer from celiac disease don't absorb nutrients well and can get sick from the gluten found in wheat, rye and barley. The illness, which affects around 2 million Americans, causes abdominal pain, bloating and diarrhea, and people who have it can suffer weight loss, fatigue, rashes and other problems. Celiac is a diagnosed illness that is more severe than gluten sensitivity, which some people self-diagnose.

Ten years ago, most people had never heard of celiac disease. But awareness has exploded in recent years, for reasons that aren't entirely clear. Some researchers say it was under-diagnosed, others say it's because people eat more processed wheat products like pastas and baked goods than in past decades, and those items use types of wheat that have a higher gluten content.

Gluten-free diets have expanded beyond those with celiac disease. Millions of people are buying gluten-free foods because they say they make them feel better, even if they don't have a wheat allergy. Americans were expected to spend $7 billion on gluten-free foods last year.

With so many people suddenly concerned with gluten content, colleges and universities have had to make accommodations. Some will allow students to be exempted from meal plans, while others will work with students individually. They may need to do even more now as the federal government is watching.

"These kids don't want to be isolated," Bast says. "Part of the college experience is being social. If you can't even eat in the school cafeteria then you are missing out on a big part of college life."

Under the Justice Department agreement, Lesley University says it will not only provide gluten-free options in its dining hall but also allow students to pre-order, provide a dedicated space for storage and preparation to avoid cross-contamination, train staff about food allergies and pay a $50,000 cash settlement to the affected students.

"We are not saying what the general meal plan has to serve or not," Hill says. "We are saying that when a college has a mandatory meal plan they have to be prepared to make reasonable modifications to that meal plan to accommodate students with disabilities."

The agreement says that food allergies may constitute a disability under the Americans With Disabilities Act, if they are severe enough. The definition was made possible under 2009 amendments to the disability law that allowed for episodic impairments that substantially limit activity.

"By preventing people from eating, they are really preventing them from accessing their educational program," Hill says of the school and its students.

Mary Pat Lohse, the chief of staff and senior adviser to Lesley University's president, says the school has been working with the Justice Department for more than three years to address students' complaints. She says the school has already implemented most parts of the settlement and will continue to update policies to serve students who need gluten-free foods.

"The settlement agreement provides a positive road map for other colleges and universities to follow," Lohse says.

Joan Rector McGlockton of the National Restaurant Association says that restaurants have taken notice of an increasing demand for gluten free options, "drawing attention to the importance of providing these options as well as the preparation methods involved in serving these options."

The group has a training program for restaurants so they will know what to do when food allergy issues arise.

Some say the Justice Department decision goes too far. Hans von Spakovsky, a fellow at the conservative Heritage Foundation who worked in the civil rights division of the Justice Department under President George W. Bush, says food allergies shouldn't apply under the disability act. He adds that the costs could be substantial when schools are already battling backlash from high tuition costs.

"I certainly encourage colleges and universities to work with students on this issue, but the fact that this is a federal case and the Justice Department is going to be deciding what kind of meals could be served in a dining hall is just absurd," he says.

Whether the government is involved or not, schools and other food service establishments are likely to hear from those who want more gluten-free foods. Dhanu Thiyagarajan, a sophomore at the University of Pittsburgh, says she decided to speak up when she arrived at school and lost weight because there were too few gluten-free options available. Like Lesley University, the University of Pittsburgh requires that on-campus students participate in a meal plan.

Thiyagarajan eventually moved off campus so she could cook her own food, but not before starting an organization of students who suffer from wheat allergies like hers. She says she is now working with food service at the school and they have made a lot of progress, though not enough for her to move back on campus.

L. Scott Lissner, the disability coordinator at Ohio State University, says he has seen similar situations at his school, though people with food allergies have not traditionally thought of themselves as disabled. He says schools will eventually have to do more than just exempt students from a meal plan.

"This is an early decision on a growing wave of needs that universities are going to have to address," he says of the Lesley University agreement.

___

Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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Manti Te'o's Fake Girlfriend May Have Duped Others

Notre Dame star linebacker Manti Te'o's fake girlfriend "Lennay Kekua" may have hoaxed other unsuspecting suitors.

"Catfish" movie director and actor Ariel Schulman told "Good Morning America" today that he believes there may have been "a few other people duped by the fake Lennay character."

Schulman and his brother Nev Schulman have been looking into the elaborate scam and claim to be corresponding with various players involved. They have come to believe that there were "a lot of other people that she was corresponding with before and maybe even during her relationship [with Te'o]."

Nev Schulman was the subject of the 2010 movie "Catfish," which spawned the TV series, because he himself was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.

As questions mount about Te'o's possible role in the complex scam, the number one question is whether Te'o was unknowingly ensnared, as he says, or whether he was complicit in the scam.

"I stand by the guy. My heart goes out to him," Ariel Schulman said. His brother has reached out to Te'o, but has not heard back.

"He had his heart broken," Schulman said. "He was grieving for someone, whether she existed or not. Those were real feelings."

Streeter Lecka/Getty Images

Manti Te'o Hoax: Was He Duped or Did He Know? Watch Video

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Click here for a who's who in the Manti Te'o case

Te'o has kept a low-profile since the news of the scandal broke. He released a statement calling the situation "incredibly embarrassing" and maintaining that he was a victim of the hoax.

He was captured briefly by news cameras on Thursday at a Florida training facility, but has not spoken publicly.

As for the woman whose photo was used as the face of Lennay Kekua, "Inside Edition" has identified her as Diane O'Meara who is very much alive. The show caught up with her on Thursday, but she declined to comment.

ABC News' legal analyst Dan Abrams said that O'Meara may be the one person in the scandal with the power to sue since her likeness was taken and used without her permission.

As for Te'o, even if he knew about the deception, it appears that he did not do anything illegal.

"He's allowed to lie to the public. He's allowed to lie to the media. He's not allowed to lie to the authorities," Abrams said on "Good Morning America."

Questions also remain about the timeline of events and when Te'o discovered that the "love of his life," as he called her, was nothing more than a fake Internet persona.

According to Notre Dame's timeline of events, Te'o learned his girlfriend didn't exist on Dec. 6.

But in a Dec. 8 interview with South Bend, Ind., TV station WSBT, Te'o said, "I really got hit with cancer. I lost both my grandparents an my girlfriend to cancer." And on Dec. 11, he talked about his girlfriend in a newspaper interview.

Te'o alerted Notre Dame on Dec. 26 about the scam, the university said.

Click here for more scandalous public confessions.

Skeptics have also cited comments by Te'o's father Brian Te'o who told a newspaper how Kekua used to visit his son in Hawaii.

Notre Dame athletic director Jack Swarbrick said the university launched their own investigation.

"Our investigators, through their work, were able to discover online chatter between the perpetrators," Swarbrick said at a Wednesday news conference. "That was sort of the ultimate proof."

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Sixty foreigners still caught in Sahara hostage crisis

ALGIERS (Reuters) - About 60 foreigners were still being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants, who threatened to attack other energy installations.

The attack, which plunged capitals around the world into crisis mode, is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.

A local Algerian source said 60 foreigners were still in the facility and some were being held hostage, but it was unclear how many and how many might be in hiding elsewhere in the sprawling compound. It was also not known whether some might have been killed and the bodies not found.

Those still unaccounted for included 10 from Japan, eight Norwegians and a number of Britons put by Cameron at "less than 30". Washington has said a number of Americans were among the hostages, without giving details, and the local source said a U.S. aircraft landed nearby on Friday.

As Western leaders clamored for news of their nationals, several expressed anger they had not been consulted by the Algerian government about its decision to storm the facility.

Algeria's state news agency said earlier more than half of 132 foreign hostages were freed and that the army had rescued 650 hostages, 573 of whom were Algerians.

"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," it said, quoting a security source.

Thirty hostages, including several Westerners, were killed during Thursday's assault, the source said, along with at least 18 of their captors, who said they had taken the site as retaliation for French intervention against Islamists in neighboring Mali.

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Philippa Fletcher; Editing by Alastair Macdonald)

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Football: 'Guardiola to City' talk did not faze Mancini

MANCHESTER, United Kingdom: Roberto Mancini on Friday said that he was never concerned about the prospect of Pep Guardiola taking his job at Manchester City, despite speculation before the Spaniard joined Bayern Munich.

Guardiola, the former Barcelona coach, was said to be lined up for a move to Eastlands should Mancini fail to deliver a trophy this year, despite leading the club to the English Premier League title last term.

The arrival at City of former Barca directors Ferran Soriano and Txiki Begiristain as chief executive and director of football only fuelled the rumours that the champions were building a backroom team for Guardiola.

But Guardiola is now set to take over at the German giants from next season, after signing a three-year contract earlier this week.

"I think that after one year out of work he decided to go to an important team," he told a news conference. "Bayern Munich is one of the world's top clubs because of its history. He decided this because it was the best solution for him.

"I did not have any problems about (the speculation of a move to City)," he added. "I understand the newspapers write that every day every manager wants to come here because it's a good place. But I think we work very well here.

"I have a five-year contract," he said, adding that he did not think it was likely that that he would be replaced in the meantime.

Mancini, whose side are currently seven points behind league leaders and local rivals Manchester United, said that although he wants to add to his squad, he may only be able to sign young players instead of big names in the transfer window.

"I think in January it is difficult to take good players because there is not one club who can sell good players," he explained.

"Maybe we can find some young players if we get a chance. In the last 12 days we probably can do something but I am not sure."

Mancini also welcomed a move to rescind a red card handed to City defender Vincent Kompany for a challenge on Jack Wilshere in last weekend's win over Arsenal, allowing him to escape a three-match ban.

"I am very pleased because I think it (the decision) is correct," said the manager. "I think the referee managed the game very well but in that situation he did not get to see well. After, I think he did very well.

"I don't think that tackle was a red card. Sometimes it's not."

Mancini meanwhile revealed that Sergio Aguero will return to action in City's home game against Fulham on Saturday, as the Argentina international has completed his recovery from a hamstring injury.

Aguero has not played since City beat Stoke on New Year's Day.

Mancini said he was relieved City appear to have overcome several recent injury problems, with the manager blaming the Premier League's hectic schedule for the club's fitness problems.

"We don't have time to recover, this is the reason," he added. "If every player play every two days for one year then they go and play international football there is no time to recover."

- AFP/de

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Large study confirms flu vaccine safe in pregnancy

NEW YORK (AP) — A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

The study was released by the New England Journal of Medicine on Wednesday as the United States and Europe suffer through an early and intense flu season. A U.S. obstetricians group this week reminded members that it's not too late for their pregnant patients to get vaccinated.

The new study was led by the Norwegian Institute of Public Health. It tracked pregnancies in Norway in 2009 and 2010 during an international epidemic of a new swine flu strain.

Before 2009, pregnant women in Norway were not routinely advised to get flu shots. But during the pandemic, vaccinations against the new strain were recommended for those in their second or third trimester.

The study focused on more than 113,000 pregnancies. Of those, 492 ended in the death of the fetus. The researchers calculated that the risk of fetal death was nearly twice as high for women who weren't vaccinated as it was in vaccinated mothers.

U.S. flu vaccination rates for pregnant women grew in the wake of the 2009 swine flu pandemic, from less than 15 percent to about 50 percent. But health officials say those rates need to be higher to protect newborns as well. Infants can't be vaccinated until 6 months, but studies have shown they pick up some protection if their mothers got the annual shot, experts say.

Because some drugs and vaccines can be harmful to a fetus, there is a long-standing concern about giving any medicine to a pregnant woman, experts acknowledged. But this study should ease any worries about the flu shot, said Dr. Denise Jamieson of the Centers for Disease Control and Prevention.

"The vaccine is safe," she said.

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Online:

Medical journal: http://www.nejm.org

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Manti Te'o Hoax Exposes 'Catfish' Internet Scams

Notre Dame Athletic Director Jack Swarbrick cited the documentary "Catfish" in trying to explain how he said
star linebacker Manti Te'o became the victim of an elaborate hoax that duped him into believing that his online girlfriend died during the 2012 college football season.

"I would refer all of you, if you're not already familiar with it, with both the documentary called 'Catfish,' the MTV show which is a derivative of that documentary, and the sort of associated things you'll find online and otherwise about catfish, or catfishing," Swarbrick told reporters Wednesday.

The 2010 blockbuster film stars Nev Schulman, who was the real-life victim of a "catfish" scam. Schulman wanted to make the documentary to show how he was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.

Schulman made the documentary as he was falling for someone named "Megan," a gorgeous 20-something from Michigan. Their online relationship blossomed until Schulman confronted "Megan."

"Megan" turned out to be a middle-aged mom of two named Angela Wesselman, who later said she had been diagnosed with schizophrenia.

Mike Ehrmann/Getty Images

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

'Catfish' Star Nev Schulman's Red Flags for Spotting Online Fakers Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Inside 'Catfish': A Tale of Twisted Cyber-Romance

"It was different. It was something new. It was a little mysterious," Schulman told ABC News in an earlier interview, describing his reaction before he discovered Megan's true identity.

Now, a much wiser Schulman is helping others catch the "catfish" in his new hit series on MTV inspired by the real-life documentary, "Catfish: The TV Show."

'Catfish' Stars Nev Schulman's Advice for Online Dating

In one episode, Schulman meets Sunny, who says she has been dating a medical student online named "Jameson" for eight months.

"He's going to be an anesthesiologist. He does online classes," Sunny says of "Jameson" in the episode.

Schulman convinces Sunny to take a road trip to meet "Jameson" face to face and and Sunny later finds out "Jameson" was really a woman who was pretending to be a man online for at least four years.

"I mean who does that," Sunny said in the episode.

For Te'o, 21, the scam was allegedly worse. The Hawaiian said during the season that his girlfriend, Lennay Kekua, died of leukemia in September on the same day Te'o's grandmother died, triggering an outpouring of support for Te'o at Notre Dame and in the media.

"If the person you're talking to has a series of family incidents, this is something to watch out for," Schulman said.

As more become connected through various social media outlets, Schulman says these "catfish" hoaxes will continue.

"So long as we're not looking people in the eye face-to-face, there's always going be room, a lot of room for deception," he said.

WATCH: Deadspin Writer Who Uncovered Hoax Explains the Story

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Algerian forces launch operation to break desert siege

ALGIERS (Reuters) - Twenty-five foreign hostages escaped and six were killed on Thursday when Algerian forces launched an operation to free them at a remote desert gas plant, Algerian sources said, as one of the biggest international hostage crises in decades unfolded.

Fast-moving details of the military operation to free the hostages were difficult to confirm. Algeria's official APS news agency said that the military had freed four foreign hostages, giving no further information.

A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen. An Algerian security source said the 25 foreign hostages had escaped.

Mauritania's ANI news agency, which has been in constant contact with the kidnappers, said seven hostages were still being held: two Americans, three Belgians, one Japanese and one British citizen.

The standoff began when gunmen calling themselves the Battalion of Blood stormed the gas plant on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.

ANI and Qatar-based Al Jazeera reported that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle. Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive.

Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way but did not provide details.

As many as 180 Algerian hostages had also been held but managed to flee, the local source said.

The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against rebels after air strikes began last week.

Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought Soviet forces in Afghanistan in the 1980s and had set up his own group in the Sahara after falling out with other local al Qaeda leaders.

A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.

The hostage takers earlier allowed some prisoners to speak to the media, apparently to put pressure on Algerian forces not to storm the compound. An unidentified hostage who spoke to France 24 television said prisoners were forced to wear explosive belts and captors had threatened to blow up the plant.

Two hostages, identified as British and Irish, spoke to Al Jazeera television and called on the Algerian army to withdraw from the area to avoid casualties.

"We are receiving care and good treatment from the kidnappers. The (Algerian) army did not withdraw and they are firing at the camp," the British man said. "There are around 150 Algerian hostages. We say to everybody that negotiations is a sign of strength and will spare many any loss of life."

NUMBERS UNCONFIRMED

The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.

Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.

The militants said seven Americans were among their hostages, a figure U.S. officials said they could not confirm.

Norwegian oil company Statoil said nine of its Norwegian staff and three Algerian employees were captive. Britain's BP, which operates the plant with Statoil and Algerian state oil company Sonatrach, said some of its staff were held but would not say how many or their nationalities.

Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Paris has not said whether any hostages were French. Vienna said one hostage was Austrian, Dublin said one was Irish and Bucharest said an unspecified number were Romanian.

Spanish oil company Cepsa said it had begun to evacuate personnel from elsewhere in Algeria.

Paris said the Algeria attack demonstrated it was right to intervene in Mali: "We have the flagrant proof that this problem goes beyond just the north of Mali," French ambassador to Mali Christian Rouyer told France Inter radio.

President Francois Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its north last year.

However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.

The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.

"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met, and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.

They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.

PRESSING ON

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was underway against the rebels that it first began targeting from the air last week.

"There was combat yesterday, on the ground and in the air. It happened overnight and is under way now," said Le Drian. Residents said a column of about 30 French Sagaie armored vehicles set off on Wednesday toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.

The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.

"The whole world clearly needs to unite and do much more than is presently being done to contain terrorism, with its very negative impact on global peace and security," President Goodluck Jonathan said.

Germany, Britain and the Netherlands have offered transport aircraft to help ferry in African troops. Washington has said it is considering what support it can offer.

Many inhabitants of northern Mali have welcomed the French action, though some also fear being caught in the cross-fire. The Mali rebels who seized Timbuktu and other oasis towns in northern Mali last year imposed Islamic law, including public amputations and beheadings that angered many locals.

A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.

(Reporting by Lamine Chikhi; Writing by Peter Graff; Editing by Giles Elgood)

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