Sorry for serial posting, but this is interesting...
A quick search through the OED uncovers the following:
bal: a Cornish dialect word for a collection of mines; usually used in compound with other words (i.e. bal-girl)
rog: a verb of scandinavian origin (from 'rugga') which means to shake, tear or tug at forcibly to the point of breaking...
So...
balrog: Mineshaker, or minebreaker (with or without functioning wings).
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