yes, you use it in crossbows, crossbow bolts, and the quest the knight sword to make the blurite sword.
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You can find blurite ore in the cave on the peninsula south of Port Sarim. Look for the ! on the map.
You can mix most of the ores you can mine to make armor with the smithing skill. 1.) Smelting one Copper ore and one Tin ore will make one bronze bar. 2.) Smelting one Iron ore will make one Iron bar. 3.) Smelting one Iron ore and two Coals will make one Steel bar. 4.) Smelting one Mithril ore and four Coals will make one Mithril bar. 5.) Smelting one Adamanite ore and six Coals will make one Adamant bar. 6.) Smelting one Runite ore and eight Coals will make one Runite bar. You can also use gold bars to make members items, but I believe the gold armors are for a certain quest, or you gotta do a quest before you can use them. (not a member anymore) You can make things with Blurite bars, which I do not remember what you need to make the, except for blurite ore, you can make arrows and various other things with the bars. (keep in mind, blurite items are members only, and the only reason you can get them on a F2P server is because it's apart of The Knight's Sword quest) :)
No
You can make a Blurite Sword in RuneScape as long as you are completing the quest The Knight's Sword. After you complete the quest you cannot obtain the sword again as you cannot trade the item with other players.
Not even close. The Rune Scimitar is better when it comes to attack stats. The blurite sword's defense stats are actually a little better then the rune Rune Scimitar's.