The massive iron ore mine was expected to produce 16 million tonnes this year, but that will now generate just 3 million tonnes of the steelmaking material.
BHP said it expected to record a charge of $650 million in its fiscal 2018 results on account of the failure but the charge was at the lower end of expectations according to analysts.
Most ore will be sourced locally from various locations including the northwestern states of Zamfara, Kebbi and Kaduna, as well as the central states of Kwara and Niger.
Vale has focused on sales of better quality iron ore, mostly from its S11D project in Pará state, as demand for the cleaner and less polluting product rises in China, its main market.