South Sudan's military battled rebels in the streets of the key northern oil town of Malakal Wednesday, the army said, as conflict in the world's newest nation entered its second month. 
 
 The battle for Malakal, the main town in Upper Nile state, is now turning into one of the most bitter in the conflict, with the United Nations reporting tank battles in the streets. 
 
 "There is heavy fighting in Malakal," army spokesman Philip Aguer said, dismissing rebel claims they had taken control of the town. 
 
 Rebel forces staged a fresh attack Tuesday to seize the town, which has already changed hands twice since the conflict began, with rebel spokesman Lul Ruai Kong, boasting the insurgents had "recaptured Malakal". 
 
 "This is not over yet," Aguer said. "The fighting is ongoing." 
 
 South Sudan has been gripped by violence since December 15, when clashes broke out between army units loyal to South Sudanese President Salva Kiir and those supporting ex-vice president Riek Machar. 
 
 According to the United Nations, about 400,000 civilians have fled their homes over the past month, many of them to escape a wave of ethnic violence between members of Kiir's Dinka people -- the country's largest group -- and Machar's Nuer community. 
 
 Up to 10,000 people are believed to have been killed in the fighting, aid sources and analysts say, including over 200 civilians who drowned in a boat fleeing the latest round of fighting in Malakal. 
 
 The East African regional bloc IGAD has been brokering peace talks in neighbouring Ethiopia, although with still little sign of a hoped-for ceasefire agreement. 
 
 Late Tuesday, Minister of Information Michael Makuei spoke optimistically that the two sides may soon "agree on the cessation of hostilities", but the rebel delegation said the key sticking point was still the release of political leaders arrested in Juba. 
 
 Signing a ceasefire and the release of the prisoners are "hooked together", rebel delegate Hussein Mar Nyout told AFP, adding that a truce would only be signed at the same time as a deal on the prisoners. 
 
 The army is also trying to recapture the town of Bor from the rebels, the capital of restive Jonglei state. Aguer, in a statement he has repeated for over a week, said that the army was "still marching on Bor". 
 
 "Frontlines there have so far been quiet this morning, but clashes can break out at any time," he said. ||||| Media playback is unsupported on your device Media caption Andrew Harding explains why the Nile is such an important boundary for those fleeing the fighting 
 
 More than 200 civilians in South Sudan have drowned in a Nile ferry accident while fleeing fighting in the town of Malakal, an army spokesman has said. 
 
 He said women and children were among the victims in Sunday's disaster. 
 
 More than 350,000 people have been displaced by the fighting between the South Sudanese government and rebel forces, according to the UN. 
 
 Rebels say they have captured Malakal, which is the gateway to the oilfields of the Upper Nile region. 
 
 However, this was denied by an army spokesman, who said the rebels had been pushed back after heavy fighting in the city. 
 
 "The reports we have are of between 200 to 300 people, including women and children. The boat was overloaded," army spokesman Philip Aguer told the AFP news agency. 
 
 Image copyright AFP Image caption Malakal lies on the east bank of the River Nile 
 
 "They all drowned. They were fleeing the fighting that broke out again in Malakal," he added. 
 
 Malakal is located on the banks of the White Nile - just north of its confluence with the Sobat River. 
 
 Thousands of civilians have been trying to escape the clashes by crossing the river, but many say they simply cannot afford to pay for a boat, says the BBC's Andrew Harding in South Sudan. 
 
 One refugee, Akuch, told our correspondent that she had had to borrow as much as 150 Sudanese pounds (£40; $66) to cross the river. 
 
 Some 9,000 civilians have recently arrived at a UN base in Malakal, almost doubling the number of people seeking shelter there, our correspondent says. 
 
 Image copyright AFP Image caption Some 19,000 people are now seeking shelter at a UN base in Malakal 
 
 Image copyright AFP Image caption Government troops are said to be advancing on the rebel-held town of Bor 
 
 Malakal has already changed hands several times since the conflict began last month. 
 
 In the south, government troops are believed to be advancing on Bor - the only major town previously in rebel hands. 
 
 Meanwhile, talks aimed at securing a ceasefire in South Sudan are currently taking place in the Ethiopian capital Addis Ababa. 
 
 The negotiations are being overseen by the East African regional bloc, Igad. 
 
 The violence erupted on 15 December between forces loyal to President Salva Kiir and soldiers backing Riek Machar, his former vice-president. 
 
 President Kiir is a member of South Sudan's largest ethnic group, the Dinka, while Mr Machar is from the Nuer community - the country's second largest. 
 
 The conflict has seen reports of mass killings along ethnic lines even though both men have prominent supporters among their rival's community. 
 
 The UN estimates that more than 1,000 people have died since the conflict began on 15 December. 
 
 South Sudan seceded from Sudan in 2011 after a long and bloody conflict, to become the world's newest state.
– Some 400,000 people have now fled South Sudan amid weeks of fighting, the UN says; at least 200 drowned on a ferry trying to escape. "The reports we have are of between 200 to 300 people, including women and children. The boat was overloaded," an army rep tells AFP. He says the incident occurred today, while other reports indicate it was overnight Sunday. "They all drowned." He said they were fleeing Upper Nile state capital Malakal, which has been under both rebel and government control; it’s situated near the state’s oil fields. The rebels have launched a new attack on the area, where some 19,000 people have sought shelter at a peacekeeping base, a UN spokesman says. Malakal, the BBC notes, sits near the White Nile, which thousands of civilians have tried to cross in a bid to escape. Many, however, can’t afford a boat ride; one refugee tells the BBC she had to borrow $66 to get across. A recent estimate puts the death toll of the conflict at 10,000.