A subsidiary of China Railway Construction Corp Ltd has signed an agreement with Ethiopia Railway Co to cooperate on a $1.19 billion rail project in Ethiopia, the company said in a statement to the Hong Kong Stock Exchange.

The project value equals 1.61 percent of China Railway's 2010 operating income.

China Railway has actively pursued overseas investments this year. In late November, a consortium involving China Railway and Aluminum Corporation of China (Chinalco) announced a deal to develop an iron ore mine in Guinea.

The company is also part of a consortium of Chinese firms currently involved in negotiations with the Ecuadorean government on a gold mining project.

The consortium has already inked a deal to develop a copper mine in Ecuador.

China Railway's stock was flat in early trading in Shanghai on Thursday.