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The Steel Dwarves are an ethnic group of Dwarves that dwells in the Ynn River Valley. Their origins date to the 16th century, when an expedition of Balgarsmiths departed Silverforge Hall for Aelantir where they founded the nation of Balgabar.

While Balgabar dwarves were primarily renowned as builders, the name "Steel Dwarf" took hold after Dolindhan knights became impressed by the steel plating donned by dwarves in battle and sought to adopt it for themselves, leading to the development of so-called "Balgaric Armour" consisting of stainless full-body plate armour and barding.

Steel Dwarves would live up to their name by pioneering the development of railways in Aelantir, even if the earliest attempts under High Havoral's regime were unsuccessful. Locomotives became known as Stelvykon or "Steel Horse" among Ynnics.

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