A disc cutter for a cutting unit used in an undercutting operation and a method of producing the same. The disc cutter including an annular disc body made of a metal alloy or metal matrix composite having a first side, a second side arranged substantially opposite to the first side and a radially peripheral part. At least one metal alloy, metal matrix composite or cemented carbide cutting part is mounted in and substantially encircling the radially peripheral part of the disc body which protrudes outwardly therefrom to engage with the rock during the mining operation. The at least one cutting part is made from a material having a higher wear resistance than the material used for the disc body, wherein the disc body and the cutting part are joined by diffusion bonds.