I think that this is a reasonable solution to make Red Sand more accessible as currently it is quite hard to obtain in large quantities. I think that including iron in the crafting recipe makes sense considering iron does account for a lot of reddish tint in landscapes. If red sand is supposed to be more exclusive and that's its gimmick, then perhaps the crafting recipe could be more iron intensive, whether that be making the nugget become an ingot or requiring multiple nuggets/ingots per crafting, as to nerf it a bit.
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