The main objective of the present work was to determine the effect of powder composition on microstructure and properties of iron-base materials used as matrices in diamond impregnated tools. The Fe-Cu-Ni powders premixed and ball-milled for 30 hours, were used for the experiments. The influence of manufacturing process parameters on microstructure and mechanical properties of produced sinters was investigated. Sintering was done by hot-pressing technique in graphite mould. The powders were consolidated to a virtually pore-free condition during 3 minutes hold at 35 MPa and 900°C. Investigations of the sintered materials included: density, hardness, static tensile test and X-ray diffraction (XRD) analysis. Microstructural and fractographic observations were also made with a scanning electron microscope (SEM). The obtained results indicate that the sintered parts have a high density, close to the theoretical value, good plasticity, relatively high hardness and yield strength, and are characterized by a coarse-grained microstructure.