A sintered ferro alloy comprises 5 to 25 wt % of one or two elements selected from Mo and W, 2 to 10 wt % of Cr, 0.1 to 0.9 wt % of Si, less than or equal to 0.7 wt % of Mn, less than or equal to 0.05 wt % of P, 0.5 to 2.0 wt % of C, 0.5 to 2.0 wt % of B, 0.1 to 7.0 wt % of at least one element selected from borides of La, Ce, Nd, Sm, Eu, Gd, Yb, Y or Sc, residual Fe, and contaminants. Also the alloy may comprise less than or equal to 20 wt % of at least one element selected from V, Nb, Ta, Ti, Zr, Hf, Co or Ni, if necessary. The alloy is produced by mixing the above mentioned components and pressurizing them in an Fe matrix, then sintering the pressurized mixture at 1150.degree. C. to 1260.degree. C. for 60 min. and reheating after sintering. This alloy has wear and heat resistance and can be utilized as valve seats for internal combustion engines in automotive vehicles.