Cool stuff. I especially like this bit:
As miners and craftsmen of Summer, Dwarfs have a quite firm position on global warming: they're in favour of it. Telling them that their work is increasing global temperatures cause them to swell with pride. They are equally displeased with demands that they stop, and with claims that their work is not affecting climate.
I do have some nitpicks about the mechanical side, though.
Fae Smith [-2] The Dwarf gains +2 on a Craft speciality of his choice; whenever Craftmanship can modify a skill, always gains +1; and gain make Dwarf specific equipment. (Non-dwarfs with this Power can make their own racial gear, obviously). For every Fate Point spent crafting a weapon, a Catch can be added to it; Inherited Silver, Iron, Salt are all common Catches to incorporated into these weapons.
This seems reasonable enough, but what does it mean to add a Catch to a weapon? Does it mean that weapon satisfies that Catch permanently?
If so, there should probably be some limitation on it. Would be kinda lame if any random dwarf could make a knife that trumps Nicodemus's noose.
Inhuman Recovery[-2], the catch is sobriety[+1]. Note that the Recovery power can remove intoxication, making minor healing abilities very useful against dwarfs in a fight.
Inhuman Toughness[-2], the catch is trappings of Winter[+1]. Dwarfs can work Cold Iron, but avoid taking it into the Never Never.
Generally speaking, you're only allowed one Catch rebate. Granted, you're not doing anything unfair here, but...actually, I think it might be more thematic to make both Powers depend on drunkeness. As-is, sobering up a dwarf has a minimal effect on their fighting abilities. Recovery is mostly for between fights, you know?
[-4] Supernatural Toughness. Four additional boxes of physical stress; these clear away normally after combat (the armour isn't being damaged, you are just taking some bruising from the impacts). This stacks with any other Toughness abilities you may have.
An additional Armor:1.
What's that bit at the end meant to mean? Is it just a reference to the fact that a full suit is armour 3, rather than armour 2 as is normal for the supernaturally tough?
[-0] The Catch Any aspect combat related Aspect can be called to aim a called shot for weak points (say, aiming for joints with a weapon or breaking a limb with Fists). If an Aspect is called for this purpose it cannot also be called to improve the attack.
This should definitely be more than a 0-point Catch.
Also, given the description, I'd expect a +3 (arguably +4) catch of "stuff armour obviously isn't useful against". Like poison, drowning, really hot weather, and thaumaturgy that detonates the heart inside your chest.
[-0] Surprisingly Heavy. You need a Might equal or higher than the level of the Weapon to use the Item, and your Might Modifies your weapon skill.
I don't think this is a good idea. No sense giving someone with Mythic Strength a random +3 to their attacks and defences. And as a restriction, it could be handled better as an Aspect.
[-0] Tool. The Item is a tool, and your Craftmanship skill complements your Weapon skill when wielding it. Under certain circumstances, your Weapons skill might complement your Craftsmanship skill as well.
I think this might also work better as an Aspect.
[-4] Supernatural Strength. However, this does not apply to lifting, nor to the Surprisingly Heavy Effect. Basically, once the weapon gets moving, not much can stop it.
Probably shouldn't be 4 Refresh if it's missing many of the normal effects of Supernatural Strength. Also, might be worth writing out specifically what it does apply to. For example, does it boost grappling?