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Erebor, the Sindarin name for the Lonely Mountain, denoted not only a mountain situated in the northern region of Rhovanion but also the subterranean Dwarven city nestled inside it. It rose to prominence as the largest Dwarven city in Middle-earth in the latter part of the Third Age. It was the origin of the River Running and lay northeast of Mirkwood, close to the Grey Mountains. The mineral richness of Lonely Mountain was discovered by Durins Folk during the Second Age, but the colony did not fully take off until Khazad-dûm fell. King Thráin I led his people there in TA 1999, when he became King under the Mountain. They eventually accumulated a great deal of wealth and riches, including the jewel known as the Arkenstone. Thráin I used the Arkenstone as a representation of his authority and so would his sons and grandsons who would come after him. The kingdom flourished and advanced for two centuries and eleven years until Thorin I left it in TA 2210 to join his kin in the Grey Mountains. Three hundred and eighty years passed while the Lonely Mountain was left untended. But the dragons that still resided in the Grey Mountains kept attacking the dwarves there, and they became caught up in an expensive battle with them, forcing the dwarves to flee the Grey Mountains in TA 2590. They parted ways, with Thrór going to the Lonely Mountain and Grór and his people settling in the Iron Hills.

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