A relevant quote from the Royal Canadian Mint:

In Economic Action Plan 2012, the Government announced it would phase out the penny from Canada's coinage system. The decision to phase out the penny was due to its excessive and rising cost of production relative to face value, the increased accumulation of pennies by Canadians in their households, environmental considerations, and the significant handling costs the penny imposes on retailers, financial institutions and the economy in general.

(Source - http://www.mint.ca/store/mint/about-the-mint/phasing-out-the...)