In this work, a study to process and characterize Fe-Cu alloys with reduced Co content is shown. The Fe-Cu-Co alloys were processed by elemental blending of powders of the system Fe- 15%wtCu with various amounts of Co, pressing at 350MPa, and sintering at 1150°C/25min./10-2 mbar. The sintered microstructure was observed. It was conducted hardness and wear tests, aiming to define the ideal Cu addition for future use in impregnated diamond tools. It was observed that higher Co contents results in improved hardness and wear resistance in the studied Fe-Cu alloys.