I've heard how good granite mining is, and its good for powermining, but where is it? Do you need to do a quest? (I hate quests, havn't hardly dun any) and what city is it near?

You have to have started Enakhra's Lament, you do not need to complete it to have access to the granite and sandstone rocks (I believe).

 

 

 

It's in the desert, directly south of the desert camp. Once you're there, you won't need waterskins : .

no you dont need the quest started... you just gotta go in shantay's pass below bandit camp, where the granite stones are and mine them.