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Kaja'mite is a strange ore with magical powers that is named after Mount Kajaro. Early in their history, the Goblins were forced to mine it by the jungle trolls of Kezan. However, its magic gave them great intelligence and the goblins overthrew the trolls. The goblin's capital city of Undermine was likely declared so because it was the mine that contained the vital kaja'mite. However, the supply of kaja'mite soon ran out. The goblins searched fruitlessly for more deposits of kaja'mite all over the world for thousands of years. Goblin intelligence peaked about 500 years before the First War, and has been declining ever since.
This section concerns content exclusive to Cataclysm.
In Cataclysm, kaja'mite does not seems to be in short supply any longer.
A kaja'mite mine is located on the Lost Isles and is mined by a group of intelligent monkeys. Some of the monkeys have been enslaved by mysterious Pygmy. By goblin law, all Kaja'mite belongs to goblins.
After the goblins reach Azshara, Kaja'mite is no longer a plot point.