A book in the library gives you clues about what you need. Dynamite is one of the three items. But you wouldn't want to light a fuse by hand-you wouldn't be able to run away fast enough ;-) Where to use? In the last location.
Hey thanks again.. i am just sitting at Doreco Party and i managed to finish without your hint. Came back to delete my question ;-) so much better finding out on your own :-) But i must admit i played using the invulnerability trainer from where you enter the elevator to the caves..