Build a Fully Automatic Goblinite Processing Facility. Takes raw goblins and refines into pure iron.
There are various ways which this can be done. One simple way is to have a incineration chamber with a pressure plate near the exit. So the goblins come along "la la la la la it's off to kill the dwarves we go" and descend into a curiously warm chamber. It's curiously warm, because they are walking on iron grates and under the iron grates is magma. They start to feel a bit nervous, but proceed anyway. Then, to their relief, they reach the end of the grates. *CLICK*. The goblins scarcely have time to freeze in fear before the chamber flash-floods with magma. How does this happen? Well the gobbos step on a pressure plate, which opens a door, holding back the output of a battery of magma-pumps sucking magma from the reservoir under the grates. The pumped magma glides over the lower layers of magma, filling the entire chamber (magma sinks rather more slowly than water, you can easily pump magma on top of magma). As the pressure plate resets, the door closes. The magma sinks back down below the grates, into the reservoir. The chamber is sparkling clean, the goblins incinerated, the magma recycled. Only their iron items remain. The next batch can now enter and be processed. (note I think it should also be possible to keep the pressure plate tile(s) free of magma by building pumps as "Vacuum cleaners" above them - otherwise 1 magma remains on the pressure plate for a while and stops anything stepping on it)