Hydraulic Tank Full of Crud

Cleaning the reservoir will be a lot easier if you completely remove the suction strainer (it's behind the big banjo fitting). A good rinse with kerosene should emulsify any crud in the bottom and flush it right out. Use an Air-Vac if you have compressed air handy.

So the shavings are probably from the manufacturing process. I've seen wierder things on new US made products.