'Ah, I see. The relationship of the Zhélruka and the Longbeards has been tumultuous during the years of their interaction, changing from peace to outright war and then to uneasy truce. The passage of the years and the waning of memory finally caused friendship to once again emerge between them... and now this happens to cast that renewal into doubt.

'With the devastation that heralded the end of the First Age, much of Middle-earth was shaken and sundered. In their land far to the east, the stronghold of the Zhélruka was destroyed and they became a wandering people. Their neighbours turned them aside and wished them ill, but King Durin II of Khazad-dûm took pity upon them and bade his folk make a home for the displaced people at Mount Gundabad. They disappeared in the mountains and never arrived, but a single survivor emerged centuries later. He spoke of the vanished Zhélruka and Thafar-gathol, a citadel he claimed they delved in the mountains. He insisted too that its riches could match those of mighty Khazad-dûm. Mad ravings, surely. None of the many to seek it over the years, Longbeard and Zhélruka alike, have ever found it. I do not believe it ever existed.

'Dwarves from Khazad-dûm did uncover the remains of an ancient delving in the Grey Mountains, and although they found a great deal of iron ore they found no mithril; this could not be Thafar-gathol. They called it Thikil-gundu, the Steel Keep, and soon their iron production threatened to rival that of the Iron Hills. Scholars whisper that this threat to their prosperity caused the Dwarves of Járnfast to send word of the Steel Keep to the Zhélruka, who demanded it was theirs by right. If the Dwarves of the Iron Hills did take part in this none have proven it, but it seems likely to me. Ever since, the Zhélruka have jealously guarded their claim to holdings in the Grey Mountains, and that resentment has coloured their dealings with all other people. If Bótuz Frostblood and others of the Zhélruka believe their property is being kept from them they will not hesitate to spill blood to regain it.

'I will not involve myself in this matter. Return to King Thorin and warn him not to trifle with the Zhélruka. They will become a dangerous foe if they feel they are being treated unfairly, and the Dwarves of the Lonely Mountain need more friends, not new enemies.'

King Thorin is at his throne in the Hall Under the Mountain.

Objectives

• Talk to King Thorin III

Durin has followed the Zhélruka into the Grey Mountains, and at King Thorin's request you should look for him on the road that climbs into Ered Mithrin.

Objectives

• Find Durin on the road that climbs into the Grey Mountains

You have found Durin on the road that climbs into the Grey Mountains.

Objectives

• Talk to Durin