Achievement unlocks when you destroy the padlock in the mine using thermite.
The solution is to pick up the beer can from the ground in the mine hallway, then grinding that up with the coffee grinder to get aluminium powder. Use the axe to shave rust off from the rusty mine cart to get rust powder/iron oxide. Mix the two to get thermite. Put thermite on the padlock, ignite with the lighter, and then use the axe to knock off the damaged padlock.