In a view point of environment, the advanced electric contact material without environmental load element such as cadmium has to be developed. Extensive studies have been carried out on $Ag-SnO_2$ electric contact material as a substitute of Ag-CdO contact materials. In the present study, powder metallurgy including compaction and sintering is introduced to solve the incomplete oxidation problems in manufacturing process of $Ag-SnO_2$ electrical contact material. The $Ag-SnO_2$ contact material, fabricated in this study, was actually set in an electric switchgear of which working voltage is 462V and current is between 25 and 40A, for the purpose of testing its performance. As a result, it exceeded the existing Ag-CdO contact materials in terminal-temperature ascent and main contact resistance.