( CNN ) -- After battling government forces , a Maoist guerrilla group in Peru has released 36 hostages it captured earlier this week , state media reported Saturday . Peru 's Defense Ministry said that 1,500 government troops had encircled members of the Shining Path in southern Peru , the state-run news agency Andina reported . This action prompted the release of the hostages , who were identified as oil and gas workers . Masked attackers had kidnapped dozens of workers in the town of Kepashiato early Monday morning , Andina reported earlier . It is not clear if all of the hostages have been released and are now safe . A police captain was killed and two people were injured during a search operation Thursday , when suspected rebels opened fire on a military helicopter , Peru 's government ombudsman said in a statement . The Maoist guerrillas had demanded $ 10 million in ransom for the hostages , in addition to explosives and weapons . But government officials said they would not not negotiate with terrorists , calling the effort to locate and secure the release of the kidnapped workers a top priority . Some of the hostages were employees of the international construction company Skanska , according to Andina . A company spokesman could not be immediately reached for comment . The kidnapping comes after authorities ' recent announcements that they had significantly dismantled and defeated the rebel group . At its peak , the Shining Path spread terror in the country through a bombing campaign that targeted buildings and key infrastructure , such as electricity towers . Throughout the 1980s and 1990s , the Peruvian government fought a campaign that greatly reduced the capacity of the group . After Peruvian authorities captured a longtime leader of the group in February , President Ollanta Humala said the group was `` no longer a threat to the country . ''
A new guerrilla group in Peru releases the hostages it captured this week , state media reported . Peruvian government troops had encircled members of the Shining Path in southern Peru . Masked attackers kidnapped dozens of workers in a town early Monday . Rebels demanded $ 10 million in ransom for the hostages , plus ammunition and weapons .