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Hi, Use the pick-axe on the iron-ore (Shiny rocks) to get Iron, the iron can be found in your inventory under "Misc".

To get metal resources, you have to use a fire-pit/furnace to smelt the iron you looted, once you click on the smelt button the amount of metal will increase automatically.

Please watch from 0:55 to 1:10 here:


Thanks.

Note: make sure you save and load the using the same character.

Yes, there is a problem with mining the ore after you have died at least once.  GameEdged expressed it.  I also experienced it.  Always have to start a new game after ya die.  So yeah, it's a thing.