For the purpose of utilizing copper-rich scrap iron as have been dumped or used for die casting, a new powder metallurgical technique was investigated. Rapidly solidified iron-copper powder was produced by high-pressure atomization and consolidated by a rolling technique at a low temperateure of 873K, varying the rollig reduction rate. The consolidation succeeded; pore volume fraction decreased with increasing reduction rate. The microstructure of the powder and the consolidated samples were observed; they had the microstructure where copper was nano-dispersed in ferrite matrix. Primary powder boundary remained in the samples. Tensile properties of the consolidated samples were examined and correlated with the microstructure. Both strength and plasticity improved by increasing the reduction rate. The severely rolled samples showed strength/elongation balance; using the determined optimum rolling condition, a high strength material was achieved, showing the prospect for a new recycling process of copper-rich scrap iron.