In swamps and jungles, small pockets of peat could be gathered and burned as fuel. It would burn less efficiently than coal but better than dry wood. It could also be dried out and made into charcoal for use in torches or campfires. Dried peat could also be composted, unlike coal.
"Dirt ores" would always appear as solo blocks, never blobs. Implementing some reduced air exposure also makes sense because peat is decayed vegetation and could have rotted or eroded away on the surface.
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