When Cameco Corp. (NYSE: CCJ), the world’s largest uranium miner, reported earnings a week ago it noted that it planned to double production capacity over the next eight years to meet demand for nuclear fuel as the market for nuclear power generation expands. Cameco, with a market cap of about $9.5 billion, has the balance sheet and operating cash flow to make that happen.

Smaller uranium miners, though, face a serious short-term issue that have persisted for nearly three years. That issue is price. In 2007, uranium prices peaked at about $120/pound. The price fell steadily, reaching about $40/pound two years ago, and has been hanging around that number ever since. Small producers like Uranium Resources, Inc. (NASDAQ: URRE) and Uranium Energy Corp. (AMEX: UEC) have had to struggle with the low pricing.

Uranium Resources reported no revenues for the first quarter of 2010 this morning. The company still has $3.8 million in cash after spending $2 million in the quarter to wind down its operations in South Texas. The company blamed low market prices.

The company has also been notified that it will no longer be listed on the NASDAQ Global Market unless it can lift its share price to $1 by July 7th. The shares have hit a new 52-week low today of $0.51/share, down 12% since this morning’s opening.

Uranium Resources has also filed a Form S-3 shelf registration to sell up to $25 million worth of securities should the company decide to do so. The SEC has not yet declared the filing effective.

While Uranium Resources can’t do much but wait and hope for some good news, Cameco is looking forward to an increase in long-term contract sales to China. The company lowered its long-term contracts outlook for the rest of 2010 from 150 million pounds to 100 million pounds, but is cautiously hoping for better.

Chinese buyers are expected to purchase 5-6 million pounds of uranium this year, but that could grow as the country ramps up its construction of nuclear power generation plants. China currently has 53 nuclear plants under construction and as many as 91 new plants could be in operation in ten years. As the plants get nearer completion, long-term contracts for uranium should increase, and so should the price.

China has never disclosed the amount of its uranium reserves, but the country isn’t believed to hold large amounts. Conversely, India currently operates 19 nuclear plants and is building 4 more. The country’s uranium reserves could supply uranium for 20,000 megawatts of generation for 40-50 years, so the country is unlikely to buy much uranium on the spot market.

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