Khazad-dûm was the ancient home of the Dwarves under the Misty Mountains. It was a large underground city. It also has a system of mines under it. The city was the only place in Middle-earth where the precious metal "mithril" could be found. This made the dwarves very rich. Khazad-dûm was founded by Durin the Deathless early in the First Age.
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