Samples of the composition RExCo20Cu80-x, RE = Sm, Gd or Dy (x = 0, 1, and
3) were produced by melt-spinning and subsequent annealing. The magnetoresi
stance is negative as in granular Co-Cu, but its values depend on the kind
of rare earth element added and on changes in the microstructure induced by
thermal annealing. An addition of 1 at.% rare earth metal to Co20Cu80 yiel
ds a considerable increase in the magnetoresistance ratio, whereas an addit
ion of 3 at.% causes a decrease. E.g., by addition of 1 at.% Dy to Co20Cu80
and optimal thermal treatment, the value of magnetoresistance ratio measur
ed at 10 K in a field of 5 T increases from -14% to -28%. The effect can be
attributed to the presence of clusters of hexagonal Dy(Co,Cu)(5), which wa
s ascertained from X-ray diffraction data, or other, metastable rare-earth
compounds and paramagnetic rare-earth atoms in the Cu matrix.