The concentration of valuable ore here can be variable depending on the planet type and where in the universe it is located but one thing is always assured.
There are two factions here fighting a bloody civil war aganist each other, no, there is no way to talk them out of it. You may sell weapons to either faction but eventually one will win over the other. The "Honorable" merchants the insects talk about are actually a group of space pirates hiding out underground in the tunnels. They also seem to have been preparing their next trade as they are surrounded by gauss guns.
You can also join the faction you wish but there is no specific benefit for doing so. Oh, and the bugs may try to kill you at some point.