So, why did he want them off their land?
It made no sense, he was just being evil for the sake of being evil. You need a population to run the mine, to provide food for the miners, to provide entertainment and banking and general services for the miners. If you drive everyone out, you're a king with no subjects. What's the point?
It's not like there was anything worth mining under the town's buildings. I didn't get the "stick your hand in this jar" thing either.
I can promise you a day of reckoning that you will not live long enough to never forget.