Fe-Cu-Co alloys are the new generation of metal matrix for diamonds in PM processed cutting tools. These alloys were created with the purpose of reducing the cobalt content in diamond tools. Nevertheless, little have been published, once this is a matter of industrial interest. In this work, samples of Fe-(10-20)wt. %Cu and Fe-(10-20) wt. %Cu -1%wt SiCp alloys were processed by cold pressing at 350 MPa, followed by sintering at 1150 degrees C/30 min. under argon atmosphere. After sintering, a study of structural and microstructural analyses was conducted. Brinell hardness and wear tests were carried out in the metal matrix, as well as the wear resistance of the metal matrix composites. The composition Fe-20%wt Cu-1%wt SiCp was the best among the studied ones, because it presented the best results of hardness and wear resistance.