From Runes of Magic Wiki
 Trade Overview
Smelting requires a lot of patience and concentration!
You can find the "Smelting" skill in the "Normal" tab on the "Skill" interface. Then when you are on the smelting page choose the recipe on the left side. Then in the lower right part of the page, select the quantity to be produced. If you have enough materials in your backpack, press "Craft" to begin work! However, you need to be near Blacksmithing Tools to do this. you can learn smelting recipes from a mining instructor.
Your current Smelting level is actually your Mining level, easily shown by pressing "y".