Veteran jihadist claims bloody Algeria siege for al Qaeda

ALGIERS/IN AMENAS, Algeria (Reuters) - A veteran Islamist fighter claimed responsibility on behalf of al Qaeda for the Algerian hostage crisis, a regional website reported on Sunday, tying the bloody desert siege to France's intervention across the Sahara in Mali.

Algeria said it expected to raise its preliminary death tolls of 23 hostages and 32 militants killed in the four-day siege at a gas plant deep in the Sahara.

Western governments whose citizens died nevertheless held back from criticizing tactics used by their ally in the struggle with Islamists across the vast desert.

"We in al Qaeda announce this blessed operation," Mokhtar Belmokhtar said in a video, according to the Sahara Media website, which quoted from the recording but did not immediately show it.

"We are ready to negotiate with the West and the Algerian government provided they stop their bombing of Mali's Muslims," said Belmokhtar, a one-eyed veteran guerrilla who fought in Afghanistan in 1980s and in Algeria's civil war in the 1990s.

Belmokhtar's fighters launched their attack on the In Amenas gas plant before dawn on Wednesday, just five days after French warplanes began strikes to halt advances by Islamists in neighboring northern Mali.

European and U.S. officials say the raid was almost certainly too elaborate to have been planned in so short a time, although the French campaign could have been one trigger for fighters to launch an assault they had already prepared.

"We had around 40 jihadists, most of them from Muslim countries and some even from the West," Sahara Media quoted Belmokhtar as saying. Algerian officials say Belmokhtar's group was behind the attack but he was not present himself.

Some Western governments have expressed frustration at not being informed in advance of the Algerian authorities' plans to storm the complex. However, Britain and France both defended the Algerian action in public.

"It's easy to say that this or that should have been done. The Algerian authorities took a decision and the toll is very high but I am a bit bothered ... when the impression is given that the Algerians are open to question. They had to deal with terrorists," French Foreign Minister Laurent Fabius said.

British Prime Minister David Cameron said in a televised statement: "Of course people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched this vicious and cowardly attack."

"We should recognize all that the Algerians have done to work with us and to help and coordinate with us. I'd like to thank them for that. We should also recognize that the Algerians too have seen lives lost among their soldiers."

OIL VULNERABILITIES EXPOSED

The Islamists' assault has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamist radicalism in northern Africa to centre stage.

Algeria, scarred by the civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, has insisted there would be no negotiation in the face of terrorism.

France especially needs close cooperation from Algeria to have a chance of crushing Islamist rebels in northern Mali. Algiers has promised to shut its porous 1,000-km border with Mali to prevent al Qaeda-linked insurgents simply melting away into its empty desert expanses and rugged mountains.

Algeria's permission for France to use its airspace, confirmed by Fabius last week, also makes it much easier to establish direct supply lines for its troops which are trying to stop the Islamist rebels from taking the whole of Mali.

Algeria's Interior Ministry had reported on Saturday that 23 hostages and 32 militants were killed during the assaults launched by Algerian special forces to end the crisis, with 107 foreign hostages and 685 Algerian hostages freed.

Minister of Communication Mohamed Said said the toll would rise when final numbers were issued in the next few hours: "I am afraid unfortunately to say that the death toll will go up," Said was quoted as saying by the official APS news agency.

Private Algerian television station Ennahar said on Sunday that 25 bodies had been discovered at the Tiguentourine plant, adding that the operation to clear the base would last 48 hours.

The bodies were believed to belong to hostages executed by the militants, said Ennahar TV, which is known to have good sources within Algerian security.

With so much still unknown about the fates of foreigners held at the sites, countries that have faced casualties have yet to issue full counts of the dead. The plant was run jointly by Britain's BP and Norway's Statoil with the Algerian state oil company. A Japanese engineering firm and a French catering company also operated there.

In London, Cameron said three British nationals were confirmed killed and another three plus a British resident were also believed to be dead. One American has been confirmed killed. Statoil says five Norwegians are missing. Japanese and French citizens are also among those missing or presumed dead.

MULTINATIONAL HOSTAGE-TAKERS

Said reported that the militants had six different nationalities and the operation to clear the plant of mines laid by the hostage-takers was still under way.

Believed to be among the 32 dead militants was their leader, Abdul Rahman al-Nigeri, a Nigerien close to Belmokhtar.

Mauritanian news agencies identified the field commander of the group that attacked the plant as Nigeri, a fighter from one of the Arab tribes in Niger who had joined the Algerian Salafist Group for Preaching and Combat (GSPC) in early-2005.

That group eventually joined up with al Qaeda to become Al Qaeda in the Islamic Maghreb (AQIM). It and allied groups are the targets of the French military operation in Mali.

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 country's outwardly tough security measures.

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

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 the 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.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris, Daniel Flynn in Dakar; Writing by David Stamp; Editing by Peter Graff)

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Japan govt says no confirmation on nine dead in Algeria

TOKYO: Japan's government said Monday it was aware of reports that nine Japanese had died in the desert standoff in Algeria, but had no confirmation of the fate of 10 of its nationals who remain unaccounted for.

In a midnight press conference, chief government spokesman Yoshihide Suga told reporters vice foreign minister Minoru Kiuchi had arrived at an airport near the gas facility that was over-run by Islamist gunmen last week.

He said Kiuchi would go into the complex and to a hospital in the town of In Amenas in an effort to determine what had happened.

The press conference came after a witness in In Amenas told AFP he knew of nine Japanese people killed during the 72-hour hostage crisis.

"We are aware of such information, but we have not confirmed any such numbers," Suga told reporters.

He said Kiuchi was with the president of contracting firm JGC, which employed 17 Japanese nationals in the area, and would be joined by another team from Japan who would work to confirm what had happened to hostages.

Suga said those known to have made it to safety would be flown back to Japan.

"To help the seven Japanese whose safety was confirmed return home, we plan to dispatch a government aircraft there," he said.

The bodies of 25 hostages have been found in and around the gas plant by Algerian forces as they mopped up at what appeared to be the end of the three-day stand-off.

Thirty-two kidnappers were also killed and the army freed 685 Algerian workers and 107 foreigners, said Algeria's interior ministry. The government in Algiers has warned the death toll could rise.

-AFP/ac

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Congress Jaipur meet: Questions from Amethi and Rae Bareli

LUCKNOW: Reports from the ongoing brainstorming session of the Congress party at Jaipur - aptly named Chintan shivir- suggesting that Rahul Gandhi is set is to play a bigger role as the party's vice president, have given a new perspective to the frequent visits of Rahul Gandhi and his sister PriyankaVadra to Amethi and Rae Bareli in recent months.

Rahul Gandhi was in Rae Bareli on January 14 for a day, while Priyanka was there for a day's visit on January 18. Both, however, did not have any serious agenda for their visits, except meeting people, groups of women, farmers and Congress supporters.

What has stood out from the two leaders' visits is the fact that while they would like to explore the extent of popular support among the people for the Congress, the people are keen on getting answers from them for recent disturbing questions.

Rahul's visit was marked by the incident of a group of youth and ex-servicemen stopping him and demanding that the government take steps to bring back the head of slain soldier Hemraj Singh.

Similarly, Priyanka on her day-long visit to Rae Bareli had to face some uncomfortable questions on women's security from a group of college girls. The girls stopped her car near the Civil Lines locality and asked her what the government was doing for women's security.

The two incidents reflect the growing uneasiness among the people over the government's political response to the recent developments involving women's security as well as the situation on the India-Pakistan border.

Since taking charge of the constituency, Priyanka has been visiting Rae Bareli at regular intervals and has been meeting people and party workers. Although the Congress bagged 21 seats in the 2009 Lok Sabha polls, it's performance was very poor in last year's Assembly elections, and it could secure only 29 seats. The defeat in Rae Bareli and Amethi was most humiliating for the party.

The increased frequency of the visit of the members of Gandhi-Nehru family to their Lok Sabha constituencies in Uttar Pradesh is an indication that they are trying hard to prevent any further erosion of the party's support base. If Varun Gandhi - Rahul's cousin -decides to contest from the adjoining constituency of Sultanpur, then the cause of worry for the Congress could become deeper.

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Obama, Biden Sworn In for Second Term

President Barack Obama and Vice President Joe Biden today officially embarked on their second term, taking the Constitutionally mandated oath of office in two separate private ceremonies inside their homes.

Shortly before noon in the Blue Room of the White House, Obama raised his right hand, with his left on a family Bible, reciting the oath administrated by Chief Justice John Roberts. He was surrounded by immediate family members, including first lady Michelle Obama and daughters, Malia and Sasha.

"I did it," he said to his daughters after taking the oath.

Biden was sworn in earlier today by Justice Sonia Sotomayor, the first Hispanic to administer a presidential oath, in a ceremony at his official residence at the U.S. Naval Observatory. He was joined by more than 120 guests, including cabinet members, extended family and his wife, Dr. Jill Biden.

Because Jan. 20 -- the official date for a new presidential term -- falls on a Sunday this year, organizers delayed by one day the traditional public inauguration ceremony and parade down Pennsylvania Avenue.

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Vice President Joe Biden Sworn in for 2nd Term Watch Video

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Obama and Biden will each repeat the oath on Monday on the west front of the Capitol, surrounded by hundreds of dignitaries and members of Congress. An estimated 800,000 people are expected to gather on the National Mall to witness the moment and inaugural parade to follow.

The dual ceremonies in 2013 means Obama will become the second president in U.S. history to take the presidential oath four times. He was sworn in twice in 2008 out of an abundance of caution after Roberts flubbed the oath of office during the public administration. This year Roberts read from a script.

Franklin Roosevelt was also sworn in four times but, unlike Obama, he was elected four times.

This year will mark the seventh time a president has taken the oath on a Sunday and then again on Monday for ceremonial purposes. Reagan last took the oath on a Sunday in 1985.

Both Obama and Biden took the oath using a special family Bible. Obama used a text that belonged to Michelle Obama's grandmother LaVaughn Delores Robinson. Biden placed his hand on a 120-year-old book with a Celtic cross on the cover that has been passed down through Biden clan.

The official inaugural activities today also included moments of prayer and remembrance that marked the solemnity of the day.

Obama and Biden met at Arlington National Cemetery for a brief morning ceremony to place a wreath on the Tomb of the Unknowns, honoring military service members who served and sacrificed. The men stood shoulder to shoulder, bowing their heads as a bugler played "Taps."

Biden, who is Catholic, began the day with a private family mass at his residence. The president and first family attended church services at Metropolitan African Methodist Episcopal Church, a historically black church and site of two pre-inaugural prayer services for former President Bill Clinton and Vice President Al Gore and their families.

The Obamas and Bidens plan to participate in a church service on Monday morning at St. John's Episcopal, across Lafayette Park from the White House. They will also attend a National Prayer Service on Tuesday at the National Cathedral.

Later on Sunday evening, the newly-inaugurated leaders will attend a candlelight reception at the National Building Museum. The president and vice president are expected to deliver brief remarks to their supporters.

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Algerian army stages "final assault" on gas plant

ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army carried out a dramatic final assault to end a siege by Islamic militants at a desert gas plant on Saturday, killing 11 al Qaeda-linked gunmen after they took the lives of seven more foreign hostages, the state news agency said.

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, which the army was removing.

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

British Defence Secretary Philip Hammond said the hostage situation had been "brought to an end" by the Algerian army assault on the militants.

The exact death toll among the gunmen and the foreign and Algerian workers at the plant near the town of In Amenas remained unclear, although a tally of reports from various sources indicated that several dozen people had been killed.

The Islamists' attack on the gas plant has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamic radicalism in northern Africa to centre stage.

Some Western governments expressed frustration at not being informed of the Algerian authorities' plans to storm the complex. Algeria's response to the raid will have been conditioned by the legacy of a civil war against Islamist insurgents in the 1990s which claimed 200,000 lives.

HOSTAGES FREED

As the army closed in, 16 foreign hostages were freed, a source close to the crisis said. They included two Americans and one Portuguese. Britain said fewer than 10 of its nationals at the plant were unaccounted for and it was urgently seeking to establish the status of all Britions caught up in the crisis.

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

BP's chief executive Bob Dudley said on Saturday four of its 18 workers at the site were missing. The remaining 14 were safe.

The crisis at the gas plant 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 on the Algerian gas plant was a response to the French offensive in Mali. 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.

U.S. Defense Secretary Leon Panetta said nobody was going to attack the United States and get away with it.

"We have made a commitment that we're going to go after al Qaeda wherever they are and wherever they try to hide," he said during a visit to London. "We have done that obviously in Afghanistan, Pakistan, we've done it in Somalia, in Yemen and we will do it in North Africa as well."

BURNED BODIES

Earlier on Saturday, Algerian special forces found 15 unidentified burned bodies at the plant, a source told Reuters.

The field commander of the group that attacked the plant is a fighter from Niger called Abdul Rahman al-Nigeri, according to Mauritanian news agencies. His boss, Mokhtar Belmokhtar, a veteran of fighting in Afghanistan in the 1980s and Algeria's civil war of the 1990s, appears not to have joined the raid.

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

But French President Francois Hollande said the Algerian military's response seemed to have been the best option given that negotiation was not possible.

"When you have people taken hostage in such large number by terrorists with such cold determination and ready to kill those hostages - as they did - Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation," Hollande said.

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.

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 the 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.

France says the hostage incident proves its decision to fight Islamists in neighboring Mali was necessary. 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 and David Alexander in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Mark Trevelyan and Rosalind Russell)

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Badminton: Lee Chong Wei reaches Malaysia Open finals

KUALA LUMPUR: World number one Lee Chong Wei dropped his first game of the tournament Saturday as he overcame Denmark's Jan O Jorgensen to secure a place in the finals of the Malaysia Badminton Open.

The home favourite, bidding for record ninth Malaysia Open title, dropped the second game to the determined and energetic 26-year-old emerging Dane, but eventually won through 21-13, 17-21, 21-12.

"It was indeed a tough match and Jan pushed me hard," said Lee, 30, who will now face Indonesia's Sony Dwi Kuncoro in the final.

"I haven't faced him in over a year but he has bounced back from his injuries to break into the top five in the world. So I'm expecting another tough match."

Kuncoro, a three-time Asian champion, was ranked as low as number 79 in the world ten months ago but is now in top form after battling back from back and leg injuries.

The 29-year-old, a bronze medallist in the 2004 Athens Olympics, will move up to number four when the new world rankings are announced next week.

Kuncoro advanced to the final by beating Japan's Kenichi Tago 21-12, 19-21, 23-21.

"I'm delighted to be back in the mix of a Superseries final. A year ago, my career was in jeopardy due to all my injuries but I've buckled down and I'm happy with my progress," he said.

In the women' singles, China's Yao Xue will be in her first Superseries final after beating South Korea's Bae Yeon-Ju 21-15, 21-18 in 34 minutes.

Yao, who turned 22 on Thursday, will take on 18-year-old Tai Tzu-ying of Taiwan, who stunned Indian top seed Saina Nehwal 22-20, 21-14.

"I never expected to come this far in this tournament. I had to come through the qualifying rounds and to reach the final is a big bonus for me," Yao said.

Chinese pair Bao Yixin/Tian Qing beat Indonesia's Lejarsar Variella Aprilsasi Putri/Marissa Vita 21-13, 21-17 to book a berth in the women's doubles finals.

The Chinese pair will face Japan's Misaki Matsutomo and Ayaka Takahashi. The Japanese players had earlier defeated Singapore's Shinta Mulia Sari and her partner Yao Lei 22-20, 21-14.

- AFP/de

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A rude awakening for Congress on social media power?

JAIPUR: Rahul Gandhi was literally left awestruck today when a Congress MP showed him hundreds of negative comments on social media on Sonia Gandhi's speech within hours of her address at the chintan shivir (brainstorming meeting).

As concerns over the party's lack of presence on social media was expressed in presence of Gandhi during discussions within the sub-group on organizational issues, party MP Shantaram Naik went up to him with a tablet and showed him that 3,000 odd tweets were posted against Gandhi's speech within hours on a news website.

Gandhi acknowledged that the party needs to address this issue.

AICC general secretary Jagdish Tytler said that there is a need for the partymen to counter the "anti-Congress propaganda" on social media and the cyberspace.

An overwhelming view was that there is an urgent need to increase the party's presence on it.

A demand was also raised to set up a separate cell on social media at the party's headquarters so that the "anti-Congress propaganda" can be countered effectively.

The issue of flash mobs also came up for discussion, wherein the speakers felt that there is a need to devise a proper strategy to meet such challenges.

Congress had to encounter the flash mob phenomena during many recent incidents including the Delhi gang-rape case where the government's handling of the protest came in for sharp criticism.

Some of the leaders also said that there is a need abolish district and block Congress committees and format the party organization as per the election unit set up, which means having a parliamentary congress committee and assembly congress committee instead of having district and block congress committees.

It was felt that this would facilitate better functioning of the party.

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

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Online:

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

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Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Inauguration to Cost Millions But Total Price Unclear

How much will all the inaugural events cost? It's hard to say.

While most events that occur in the capital have a hard-and-fast budget, the inauguration's many moving parts, safety concerns and large geographic reach make it hard to quantify – especially before the main event.

In 2009, ABC reported the total cost of Obama's first inauguration was $170 million. While incumbent presidents historically spend less on a second inauguration, it's unclear what the total bill will be this time around. Analysis of some of the known appropriations so far puts the total at $13.637 million, but it will no doubt be a much larger price tag when everything is accounted for.

RELATED: 12 Things You Didn't Know About the Inauguration

One of the main chunks missing from this year's tab is the budget for the Presidential Inaugural Committee – the group responsible for using donated money to put together this year's celebrations, including National Day of Service, the Kids' Inaugural Concert, the Parade and the Inaugural Balls.

In 2009, the PIC collected more than $53 million in donations, according to a report filed with the Federal Elections Commission 90 days after the inauguration.

Saul Loeb/AFP/Getty Images

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While enthusiasm for the inauguration was running higher that year, it is possible the PIC will haul in more money this time around, as they have eliminated some of the self-imposed regulations on the kinds of donations they can accept. For his first inauguration, President Obama did not take money from corporations or gifts that exceeded $50,000.

In 2013, his committee did away with those rules. PIC spokesman Brent Colburn would not say why the change took place, insisting that each committee operates independently from the precedent set by the inaugurations before – even if staff like Colburn are repeats on the committee from 2009.

RELATED: Inauguration Weekend: A Star-Powered Lineup

The PIC also won't say how much they have already collected or even what their goal was. Colburn explained that these are "moving budgets," which won't stabilize until after the inauguration.

They have, however, released the names of donors on their website weekly. As of Friday afternoon, they were up to 993 donors.

Another leg of the costs is covered by the Joint Congressional Committee on Inaugural Ceremonies. They take care of the swearing-in ceremony and the Congressional luncheon. For those events they have a total budget of $1.237 million, down by about $163,000 from 2009. Whereas the PIC budget comes from donations, the American taxpayers foot the bill for the JCCIC.

Beyond those two inauguration-focused groups, there are a myriad of broader organizations that spend money on the inauguration as well.

RELATED: Plenty of Room at the Inns for 2013 Inauguration

A Congressional Research Service report from December says the government spent $22 million reimbursing local and state governments and the National Park Service for their participation in the 2009 inauguration, but that figure is low. The D.C. government alone received twice that amount, according to the mayor's office. Officials from D.C., Maryland and Virginia estimated their total need to be $75 million.

NPS got an appropriation from Congress of $1.2 million so far this year, according to communications officer Carol Johnson, and another $1.4 million went to the U.S. Park Police.

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Foreigners still caught in Sahara hostage crisis

ALGIERS (Reuters) - More than 20 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.

Thirty hostages, including at least seven Westerners, were killed during Thursday's assault, along with at least 18 of their captors, said an Algerian security source.

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 100 of 132 foreign hostages had been freed from the facility. The fate of the other 32 was unclear as the situation was changing rapidly.

Earlier he said 60 were still missing with some believed still held hostage, but it was unclear how many, and how many might be in hiding elsewhere in the sprawling compound.

Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.

Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30.

France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.

Some countries have been reluctant to give details of the numbers of their missing nationals to avoid disclosing information that may be useful to their captors.

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

The sprawling facility housed hundreds of workers. Algeria's state news agency said the army had rescued 650 hostages in total, 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.

MULTINATIONAL INSURGENCY

Algerian commanders said they moved in on Thursday about 30 hours after the siege began because the gunmen had demanded to be allowed to take their captives abroad.

An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops.

A French hostage employed by a French catering company said Algerian military forces had found some British hostages hiding and were combing the sprawling In Amenas site for others when he was escorted away by the military.

"I hid in my room for nearly 40 hours, under the bed. I put boards up pretty much all round," Alexandre Berceaux told Europe 1 raid. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

"When Algerian solders ... came for me, I didn't even know it was over. They were with some of my colleagues, otherwise I'd never have opened the door."

Western governments are trying to determine the degree to which the hostage taking was part of an international conspiracy and was linked, as the captors claimed, to the week-old French military intervention in neighboring Mali.

The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.

Algeria state news agency APS said the group had planned to take the hostages to Mali.

The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.

U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere," he said in London. "Those who would wantonly attack our country and our people will have no place to hide."

MALI WOES

The crisis posed a serious dilemma for former colonial power Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in Mali, another former colony.

The desert fighters have proved to be better trained and equipped than France had anticipated, diplomats told Reuters at the United Nations, which said 400,000 people could flee Mali to neighboring countries in the coming months.

In Algeria, the kidnappers warned locals to stay away from foreign companies' oil and gas installations, threatening more attacks, Mauritania's news agency ANI said, citing a spokesman for the group.

Algerian workers form the backbone of an oil and gas industry that has attracted international firms in recent years partly because of military-style security. The kidnapping, storming and further threat cast a deep shadow over its future.

Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm, said on Friday.

The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s and one of a host of Saharan Islamists, flush with arms and fighters from the 2011 civil war in Libya. He appears not to have been present.

Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who travelled from Libya, and the lesser known "Movement of the Islamic Youth in the South".

"They were carrying heavy weapons including rifles used by the Libyan army during (Muammar) Gadaffi's rule," he said. "They also had rocket-propelled grenades and machineguns."

Algeria's government is implacably at odds with Islamist guerrillas who remain at large in the south, years after the civil war through the 1990s in which some 200,000 people died.

Britain's Cameron, who warned people to prepare for bad news and who cancelled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.

U.S. officials had no clear information on the fate of Americans, though a U.S. military drone had flown over the area. Washington, like its European allies, has endorsed France's move to protect the Malian capital by mounting air strikes last week and now sending 1,400 ground troops to attack Islamist rebels.

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 security measures.

(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 Peter Graff)

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