Long ago, Durin, father of the dwarves, founded a city called Khazad-Dum deep within the Misty Mountains.
In fact, the city is so large that it spans the width of the mountain range.
Its eastern gate is Dimril Dale, just north of Lothlorien, and its western gate is the stair falls in Eregion.
Khazad-Dum rises to the peak of Zirak Zigil, the place of Durin's Tower.
For ages the city prospered, for its mines were rich with mithril silver.
However, creatures of unspeakable evil also lurk in the depths below.
Chief amonst these is the Balrog of Morgoth.
It single handedly slayed Durin, and lay ruin to the Dwarven forces.
Goblins hordes then overran the city.
The surviving dwarves fled and sealed the Balrog in Khazad-Dum.
About the Army
Khazad-Dum is the Dwarf heavy hitter list.
It has all of the troops including Valut Warden Teams, which are called Dwarf Tunnel Fighting Teams in the Legions of Middle Earth book.
It only lacks the depth of characters of Erebor.
Durin, King of Khazad-Dum, is, just about as hard to kill as Dain.
He also has Durin's Axe, and the Horn of Zirak-zigil.
His drawbacks are his high points cost, lack of ranged attacks, and poor mobility.
Mardin is designed to kill trolls.
However, he is just not worth his points cost.
I would prefer to face a troll with a dwarf king or several Iron Guard.
Murin and Drar are an Orc killing team.
Murin hacks up the Orcs with Kalazal, his sword.
Drar is the long range expert shooting hails of arrows.
This being said, I generally feel that archery is most effective with masses of troops, so I tend to prefer a Dwarf King and a bunch of Rangers to this pair.
The Dwarf Captain is like a Jr. Dwarf King.
If you want to save on points, you may consider using him.
Dwarf Warriors should be given shields.
I never give them two handed weapons or dwarf bows.
If you want two handed weapons you are better off taking Khazad Guard, and if you want bows, you are better of taking Dwarf Rangers with longbows.
Dwarf Rangers should be armed with longbows or throwing axes.
The Iron Guard are my favorite Dwarven troops.
They have a great stat line all across the board.
They also have throwing weapons.
Their only downfall is that they are expensive, so you will be outnumbered and have a lower break point.
However, I still think that they are worth the points.
Khazad Guard are the heavy hitters of the forces of good.
They have good fight, better than average strength, and the potential to use a two handed weapon.
Best of all, they have good armor, so they are less likely to die if they lose a fight.
The Dwarven Ballista is a poor man's Avenger Bolt Thrower.
It can kill tough targets at range, but it does not have the multiple shots of the Avenger.
It often misses its mark, or only kills a lowly goblin.