PURPOSE: To produce inexpensively a material having excellent resistance to melt sticking and contact performance by press molding a specifically composed powder mixture contg. Ni and oxides of In, Zn and Cu and the balance Ag then sintering the molding in a reducing atmosphere thereby reducing a part of the oxides.

CONSTITUTION: A powder mixture composed of 10W30% Ni, 1.7W5% In oxide (in terms of In), 1.7W15% Zn oxide (in terms of Zn), 1.7W10% Cu oxide (in terms of Cu) and the balance substantially Ag is press molded. The molding is sintered in a reducing atmosphere of decomposed gaseous NH3 and at the same time at least a part of the above-described oxides are reduced and are solutionized in the Ni to fine the Ni alloy. The fine Ni alloy particles are thus dispersed in the Ag matrix. A part of the reduced metal is solutionized into the Ag as well to increase slightly the resistance as compared to pure Ag but poses no problem as an electrical contact material.