The first thing you should do is cutting down a tree. To do this grab a Stone from the ground, Walk up to a tree, and hit the tree with the stone on its edge. The damage done to an object is based on the object's mass, attack value, and force when it collides, and there is a sharpness damage multiplier for very thin objects.
Next cut the tree trunk into a long thin plank which you can attach to a rock to make an axe for more damage when hitting an object.
Once you have enough wood, create a pile of chopped up Dry Grass with wood on top. Find some Hematite and put this in the pile. Then find a piece of Pyrite and another Stone, Hit the stone with the Pyrite near the pile to create a spark and then a fire. The fire will start on the Dry Grass and spread to the wood. Once the Hematite is heated up to 600°C it will turn into Iron.
While the Iron is still above 600°C strike 1 side with a stone to compress the iron until it cannot be compressed anymore. Once you have done that. Cut some of the iron off by striking it with the corner of a stone. With the cut out Iron, Attach it to a stick to create a better axe.
First find some Tungsten Ore, then heat it up to 600*C to turn it into Tungsten. To be able to deform Tungsten, make another pile and attach Niter to the Tungsten. This will increase combustion in turn making the fire hotter. Repeat the Iron forging process to create a Tungsten Axe.