From Gamer Escape's FFXIV Wiki, the free Final Fantasy XIV encyclopedia
- Minfilia would like you to meet a goblin scholar named Mutamix, whom she says introduced a revolutionary new method of gear enhancement to Eorzea. Make your way to the goblin's encampment at the Bonfire in central Thanalan, and present to him Minfilia's dagger.
- Arriving at the Bonfire, you are treated to a zany display by Mutamix and his students. Upon learning your identity, Mutamix proceeds to teach you the basics of materia, a type of crystal which can be melded to items to enhance their powers. Assuming you understood correctly, only experienced Disciples of the Hand are capable of attaching these crystals. Take yourself back to the Waking Sands, and present to Minfilia her materia-enhanced dagger.
- Minfilia impresses upon you the importance of being well equipped for battle, and explains that materia is an effective way to get the most out of your gear. Put this knowledge to good use as you undertake your future missions.