A powder metal alloy composition is used in the production of a sintered powder metal insert for casting into an aluminum casting. The powder metal alloy composition contains an iron powder metal base, copper such that the copper is 3.5 weight percent or more of the powder metal alloy composition, and carbon in an amount of 0.1 to 1.0 weight percent of the powder metal alloy composition. After compacting and sintering the powder metal alloy composition to form the sintered powder metal insert, the sintered powder metal insert has a copper gradient that provides a higher concentration of copper on the surface of the sintered powder metal insert than in a center of the grains of the sintered powder metal insert. The higher copper concentration on the surface of the insert enables a strong metallurgical bond to be formed with the aluminum casting during casting.
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