This dwarf is a peasant, a citizen from the lower classes that cannot afford to live inside an underground city, much like in medieval times most of people lived outside the castle wall's protection. “Surface dwarves" are a common sight in any dwarven kingdom as there are some types of jobs and activities that require temporary or even permanent dwelling above ground . In times of prosperity the population would be so big that many would not be able to live inside a city and in times of need it is usual for the dwarves to be found wandering the world and eve making a living in human cities . Therefore it is not rare to encounter a dwarf living in the open such as this one.
He is leading a pack Goat loaded with firewood, a rare commodity at such heights. Dwarves usually rely on mineral coal for most purposes, but sometimes it is not readily available or is too expensive for those who live far from the mines.