Blacksmith Karrod:
The craftsmen of the Elves of light are skilled indeed, but they are proud -- they look down on any metals other than Mithril, and hate to even touch them. Of course, Mithril is a fine material, no doubt. It is harder than iron, very lightweight, and is friendly to magic.
However, I am not bound by tradition, and I study how to process various materials other than Mithril. I have already learned how to handle adamantite and Damascus, and have recently been studying Oriharukon.
Ask him to make a fine sword.
Ask him to make an item.
Ask about the local lord and tax rate.
Quest