UPDATE 2-Australia to back India-U.S. nuclear deal at IAEA

(Adds comments on Nuclear Supplier Group)

CANBERRA, Aug 1 (Reuters) - Australia will back an India-U.S. nuclear agreement at an International Atomic Energy Agency (IAEA) meeting in Vienna, Australian Foreign Minister Stephen Smith said on Friday.

However, Smith said Australia would not reverse its policy of refusing to sell uranium to countries, such as India, that have not signed the Nuclear Non-Proliferation Treaty (NPT).

Australia is one of 35 members of the IAEA board, which will meet in Vienna on Friday to decide whether to endorse the India-U.S. agreement to share nuclear fuel and technology for India's civilian power plants.

"After careful consideration, the Australian government has formed the view that the safeguards agreement is a positive step which will strengthen nuclear non-proliferation efforts and is consistent with the non-proliferation objectives of the Nuclear Non-Proliferation Treaty," Smith said in a statement.

"The Australian government's position remains very firmly that it will not supply uranium to countries that are not a party to the NPT," he added.

Australia has 40 percent of the world's known uranium reserves, but has consistently rejected India's pleas to be allowed to buy the nuclear fuel from Australia for its growing energy needs.

Australia exports uranium to 36 countries, but only for peaceful purposes, and only sells to countries that have negotiated bilateral nuclear safeguards agreements.

Australia is also a member of the Nuclear Suppliers Group, which will decide whether to endorse the India-U.S. nuclear agreement later in August.