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Ore can be made into tools.

CivilopediaEdit

Very few minerals or metals come from the Earth ready for human usage. Most arrive chemically bound to other, unnecessary elements that must be removed. Minerals in this raw state are known as ore and must be processed to become useful. Iron ore, for example, is brittle and easily rusted in its natural state. After being smelted and processed by a blacksmith, however, iron can be shaped into artwork, beaten into tools or weapons or poured into whatever mold its caster desires.

Civilization IV: Colonization Goods

CigarsClothCoatsCottonCrossesEducationFoodFursGunsHorsesLiberty BellLumberOreProductionRumSilverSugarTobaccoToolsTrade Goods