Dwarves were taught special skills by the Vala Aulë and spent most of their time crafting, smithying and mining in their massive underground cities.
The Dwarves were some of the greatest miners ever to exist in Middle-earth. The Dwarves dug immense halls under mountains where they built their cities. Dwarven miners dug for precious minerals such as gold, iron, copper, and silver from all over mountains in Middle-earth, though the Dwarves considered coal mining degrading. In ancient times, the Dwarves found Mithril in the mines of Khazad-dûm. While mining beneath the Lonely Mountain, they discovered the Arkenstone at the Heart of the Mountain.
They were also capable masons and smiths - Dwarven smithying skills were said to be rivaled only by those of the Elves, and their masonry creations were bested by none. The skill of the Dwarves was unmatched; they crafted objects of great beauty out of diamond, emerald, ruby and sapphire. Everything Dwarven was beautifully crafted and intricate. They crafted many famed weapons, armors, and items of art and beauty, among them Narsil, the sword of Elendil, the Dragon-helm of Dor-lómin and the necklace Nauglamír.
They had a knack for starting a fire almost anywhere out of almost anything. Although they knew how, Dwarves did not farm or herd often, as they preferred to spend their time underground mining and crafting. They rather traded crafted items with Men and Elves in exchange for food.
