This work deals with the use of Fe-Cu alloys for use as matrix for diamonds in cutting tools. In this case it was processed diamond beads for diamond wires - used in the slabbing of dimension stones. Normally, diamond beads are PM processed. The beads of the present work were manufactured using Fe-Cu alloy with addition of 1wt% of SiC as the matrix metallic bond. It was carried out shrinkage/swelling and microstructural analyses, Brinell hardness measurements, as well as the abrasion resistance of beads produced here in confront with commercial ones. The results indicate that it was processed beads with similar abrasion resistance and performance than those of the commercial diamond beads.