To provide a novel method of manufacturing coated particles.

Particulate materials are coated under low shear conditions and preferably below the melting point of the coating material. In one aspect, metallurgical compositions are provided that contain a metal-based powder bound to an alloying powder by way of a low melting polyethylene. The binding agent is blended with the metal-based and alloying powders at elevated temperatures preferably below the melting point of the binding agent. The bonded metallurgical composition can be used in compaction processes to manufacture compacted parts that can be sintered to obtain products with high impact strength.