Islamist insurgents have attacked strategic port town of Palma, near gas operations on Afungi peninsula

Helicopter gunships have exchanged fire with Islamist insurgents as fighting raged for a second day around a strategic town in northern Mozambique.

The town of Palma was attacked earlier this week in a three-pronged assault by rebel fighters which was launched just hours after Total, the France-based oil and gas company, announced that it would resume work on its multibillion-dollar liquified natural gas project nearby.

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