Iron is created by a blacksmith by smelting Iron ore, which can be mined in mines. Iron ore, regardless of its size or whether it's a tight gathering of many pieces in a 1x1 space, will always yield 2 iron when mined by a citizen.
It is a required material to build higher-tier buildings, such as the Town Hall[1] and to create Iron Tools used on Farms[2].
Iron can be stored in the Stock Pile.
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