MINING
Where:
Catherby Bank or Skiller Area
Requirements:
Rune Pickaxe [equipped]
Copper - 1 mining
Tin - 1 mining
Iron - 15 mining
Coal - 30 mining
Mithril - 50 mining
Adamant - 70 mining
Rune - 75 mining
Cape - 99 mining
How:
While have a rune pickaxe equipped, click on a rock which you have the required mining to level for and receive the ore. Repeat this process until you are done.
SMITHING
Where:
Skiller Arena
Requirements:
Hammer
Bronze Bar - 1 smithing - Tin + Copper
Iron Bar - 1 smiting - Iron
All that works, I believe
How:
Use the ores you receive from mining on the furnace and you will receive a bar.
Use the bar on the the nearby anvil and you will receive some cash.