Dawn attack on the Security Belt separatist force near Lawdar city blamed on suspected Al Qaeda gunmen.
A Saudi-led coalition joint force will monitor a ceasefire between separatists, backed by UAE, and the Hadi administration in Abyan province, where fighting has raged over the past six months.
Foreign Minister Mohammed al Hadhrami said the Southern Transitional Council had refused calls from the government and the international community to reverse its declaration of self-rule.
The move comes after the United Arab Emirates-backed Shabwani Elite forces withdrew from the area.
Saudi-led pro-Yemeni government coalition kills at least 800 Al Qaeda militants in port city of Mukalla, Yemen.
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