A super-fine compound powder, Ag/SnO2+La2O3+ Bi2O3, has been obtained using the chemical coprecipitation method. And a new contact material, Ag/SnO2+La2O3+Bi2O3, was produced by the powder metallurgy method. Its properties are as follows: the density is 9.75-9.93 g/cm3, the resistivity is 2.31-2.55 cm, the hardness is 880-985 MPa. Its microstructure shows that the fine oxides have a uniform distribution in the silver matrix. The results of make-break capacity and temperature rise testing show that the new material has better ability of anti-arc erosion and lower temperature rise than that of commonly used Ag/CdO.