Its an odd game. At the moment the guy is still writing it but you have the ability to dig/mine and anything you mine can be collected as raw material. You either build something with it or use it as a component to create a tool or object.
So collecting wood lets you make a wood mining pick. That lets you collect stone and coal. Stone lets you make a stone mining pick. That lets you collect iron ore. Stone lets you make a furnace. Iron ore + coal in the furnace gets you iron ingots. Wood + iron ingots lets you make an iron mining pick. etc...
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