Australia's richest woman, Gina Rinehart, has bought a 50 per cent stake in two massive cattle stations in Western Australia.

Mrs Rinehart's company, Hancock Prospecting, has paid about $40 million for a share in the Liveringa and Nerrima stations in the West Kimberley.

The other half is owned by Dowford Investments, the parent of the Milne AgriGroup, headed up by Graham Laitt.

The new joint entity, known as Liveringa Station Beef (LSB), will also take over the mothballed Waroona abattoir south of Perth.

In a statement, Hancock Prospecting confirmed it had entered into the joint venture with Dowford to expand prime beef production on the stations.

The statement said Hancock Prospecting had invested in LSB to continue its "longstanding role in primary industries, including the pastoral industry, in Australia".

"It intends to provide capital and commercial knowledge to support the industry as it targets expansion into global markets," the statement added.

Rinehart wants to meet 'needs of Asian neighbours'

Mrs Rinehart said Australia's north had a "vast potential" as a food producer.

"We are well placed to meet the growing needs of our Asian neighbours," she said.

Milne Agrigroup's businesses include Milne Feeds animal nutrition, Mt Barker Free Range Chicken and Plantagenet Free Range Pork.

Mrs Rinehart's move follows mining magnate Andrew Forrest's announcement earlier this year that he had bought Harvey Beef, WA's largest beef processor and the state's only accredited exporter to China.

WA Beef Council chairman Tony Hiscock said regardless of who owns what, the investment was a good thing for the beef industry.

"We've seen two large levels of investment in a very short period of time within the WA beef industry," he said.

"That's got to be sending signals of confidence that there is expansion that's going to happen within the industry."