Iron Ingots are acquired by smelting iron ore, which may be found and mined in cave systems. These ingots are used to create various tools, and are the second most effective material available. The first being diamonds. Iron ingots are used to create iron axes, iron shovels, iron pickaxes, iron swords, minecart tracks, a minecart, buckets, armor, and a compass. A Pick Axe made of Iron is capable of mining all minerals except bedrock. Iron Pick Axes can mine obsidian, just not obtain anything upon break.