So I've just read through some unreleased setting info and I figured I'll summarize it for you.
"The majority of the iron used in the initial work for the construction of the Laanx temple was mined from beneath the temple foundations. This resulted in people digging down, discovering more ore as the first veins ran out, carving out passages and chambers to follow the flow of the ore. As they continued they created a kind of underground temple set and divided with heavy doors of iron. It was here in these chambers and tunnels that they first started their worship of Laanx, here where they converted new followers into their faith. It took more than 20 years before the temple was finally finished, and once it was the faithful left and move from the temple formed during the mining above into what is now the Laanx Temple."
Now, this might not be the /final/ version of things when this is written out in game, finally, but it wont be much different. This was also hundreds of years before the point we are playing at now and the area had clearly become rundown and disused, and Hydlaa would have developed round the mines a lot since they were used for this.