Metalwork can be done at the forge if possessing a Heavy Hammer, and by bringing the forge up to at least 150 degrees Celsius/270 degrees Fahrenheit.
The furnace below any forge may also be used like a fire. A second is in the Forlorn Muskeg in the back left hand corner of the map. It is one of at least two places where one may craft Arrowheads, Improvised Knife. One forge is located in the Riken on the map ' Desolation Point'.