Lane Algorithm is used to determine optimum cut off grade for a mining operation. There may be three parts in each operation: mining, concentration and refining. In Sarcheshmeh Copper Mine the concentrate coming from the stock has the average grade in addition to the production rate and cost. Therefore, the grade distribution is affected by production rate and cost parameters. The calculation of the cut off grade is done using a modified Lane Algorithm. Therefore, a mix of blending stock received from outside and the concentrate from the mine was considered in the Lane Algorithm. Initially, the profit objective function was taken into account with the addition of the stock limitations; then, the Lane Quartet Model was used and the cut off grade determined. The model uses the technical and economical data of different parts to determine the cut off grade. The result of the model was a cut off grade of (0.1408%), which brings about an increase of 848051645 US dollars as profit, in comparison to the cut off grade (0.1617%) that was obtained by the Lane tripartite model.

Key words: production management; cut off grade; Lane quartet mode; Sarcheshmeh Copper Mine.

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