I bet blacksmiths did use it! We used to buy the pre-bagged hardwood lump charcoal and I noticed pieces of wood trim in the bag. The manufacturers probably buy untreated wood scraps (that have already been seasoned) as a short-cut.
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My last bag of "premium lump charcoal" had rocks in it. I messaged the company and they said it was due to the artisinal way they craft the charcoal :)