Algeria Crisis Ends in Bloodbath and France Confirms Troops Will Stay in Mali to 'Defeat Terrorism'

A dramatic four-day hostage crisis at an Algerian gas plant ended in a bloodbath Saturday when Islamists executed all seven of their remaining foreign captives as troops stormed the desert complex.

Twenty-one hostages, including an unknown number of foreigners, died during the siege that began when the al-Qaida-linked gunmen attacked the facility deep in the Sahara at dawn on Wednesday, the interior ministry said.

Thirty-two kidnappers were also killed, and special forces were able to free "685 Algerian workers and 107 foreigners," the ministry said.

The kidnappers led by Algerian Mokhtar Belmokhtar, a former al-Qaida commander in North Africa, killed two people on a bus, a Briton and an Algerian, before taking hundreds of workers hostage when they overran the In Amenas complex.

Belmokhtar's "Signatories in Blood" group had been demanding an end to French military intervention against jihadists in neighboring Mali.

In Saturday's assault, "the Algerian army took out 11 terrorists, and the terrorist group killed seven foreign hostages," state television said, without giving a breakdown of their nationalities.

A security official who spoke to AFP as army helicopters overflew the plant gave the same death tolls, adding it was believed the foreigners were executed "in retaliation".

As experts began to clear the complex of bombs planted by the Islamists, residents of In Amenas breathed a collective sigh of relief.

"We went from a peaceful situation to a terror situation," said one resident who gave his name as Fouad.

"The plant could have exploded and taken out the town," said another.

Brahim Zaghdaoui said he was not surprised by the Algerian army's ruthless final assault.

"It was predictable that it would end like that," he said.

Most of the hostages had been freed on Thursday when Algerian forces launched a rescue operation, which was widely condemned as hasty.

But French President Francois Hollande and U.S. Defense Secretary Leon Panetta refused to lay the blame on Algeria.

The Algiers government's response was "the most appropriate" given it was dealing with "coldly determined terrorists ready to kill their hostages," said Hollande.

Panetta added: "They are in the region, they understand the threat from terrorism... I think it's important that we continue to work with (Algiers) to develop a regional approach."

British Defense Secretary Philip Hammond said the crisis had been "brought to an end by a further assault by Algerian forces, which has resulted in further loss of life".

"We're pressing the Algerians for details on the exact situation," he said.

The deaths were "appalling and unacceptable and we must be clear that it is the terrorists who bear sole responsibility for it," he told a news conference with Panetta.

The hostage-taking was the largest since the 2008 Mumbai attack, and the biggest by jihadists since hundreds were killed in a Moscow theater in 2002 and at a school in the Russian town of Beslan in 2004, according to monitoring group IntelCenter.

Foreign Secretary William Hague said five British nationals and a British resident are dead or unaccounted for.

Prime Minister Shinzo Abe of Japan said he had received "severe information" about 10 of his country's nationals who were still missing.

On Friday the gunmen, cited by Mauritania's ANI news agency, said they were still holding "seven foreign hostages" -- three Belgians, two Americans, one Japanese and a Briton.

However, Brussels said it had no indication any of its nationals were being held.

Algeria was strongly criticized for launching the initial assault, which the kidnappers said had left dead 34 of the hostages and 15 of their own fighters.

Belmokhtar also wanted to exchange American hostages for the blind Egyptian sheikh Omar Abdul Rahman and Pakistani Aafia Siddiqui, jailed in the United States on charges of terrorist links.

At least one American had already been confirmed dead before Saturday's assault.

But the State Department said "the United States does not negotiate with terrorists".

France, which said on Saturday that 2,000 of the 2,500 troops it had pledged were now on the ground in Mali, said that no more of its citizens were being held.

President Hollande said French troops would stay in Mali as long as is needed "to defeat terrorism" in the West African country and its neighbors.

Algerian news agency APS quoted a government official as saying the kidnappers, who claimed to have come from Niger, were armed with machineguns, assault rifles, rocket launchers and missiles.

This was confirmed by an Algerian driver, Iba El Haza, who said the hostage-takers spoke in different Arabic dialects and perhaps also in English.

"From their accents I understood one was Egyptian, one Tunisian, another Algerian and one was speaking English or (another) foreign language," Haza told AFP after escaping on Thursday.

"The terrorists said: 'You have nothing to do with this, you are Algerians and Muslims. We won't keep you, we only want the foreigners.'"