The last penny has dropped in Canada.

[OzDragon]

As I am a coin collector this could mean that the Canadian Penny will become more of a collector's item.

Last penny comes off the line in Winnipeg

Published On Fri May 04 2012

Jim Flaherty, Canadian Minister of Finance and Minister responsible for the Royal Canadian Mint, holds the last penny produced at the Royal Canadian Mint in Winnipeg, May 4, 2012. At left is Ian Bennett, President and CEO of Royal Canadian Mint.


The Canadian Press





WINNIPEG—The last penny has dropped in Canada.


The Royal Canadian Mint in Winnipeg struck the final one-cent coin under the eye of Finance Minister Jim Flaherty on Friday.


Flaherty pushed a button on a machine that moments later spit out the last batch of shiny pennies to enter circulation.


“The time has come to make the sensible decision to end production of the coin, which is underused by Canadians, no longer vital to commerce and ultimately a burden on Canada’s balance sheet,” Flaherty said.


He announced in the March budget that the coin would no longer be produced because the cost of making it is more than it’s worth. He has estimated that the government will save $11 million a year.
Flaherty said the penny used to be a source of revenue for the Mint and the government when its face value exceeded the expense to make it.


“Unfortunately this fine balance could not be maintained indefinitely. Over time inflation eroded the purchasing power of the penny and multiplied its manufacturing costs.”


Flaherty is urging people not to hang onto their coppers.


“We hope that all Canadians will consider putting their last pennies to good use by donating them to charity.”


Even though the coins will no longer be made, they will always be accepted in transactions as long as they are still in circulation.
Canada joins several countries that have already dropped pennies or their equivalent, including Australia, New Zealand, Brazil, Israel and South Africa.


The first penny to be domestically struck was produced in Ottawa in January 1908 to open the first national mint. Lady Grey, wife of Gov. Gen. Lord Albert Grey, was there to oversee the penny’s birth.
The last one-cent piece is going to Canada’s currency museum in Ottawa.

I believe this is a good move seeing as the cost of copper and manufacturing is putting a drain on the overall Canadian financial stability. My question would be how is this going to affect us as Canadian tax-payers and spenders?

Will we be forced to round up our purchases to the nearest round figure? I'm pretty sure there is no way they will round it down.

Will we see that 11 million dollars saved finds its way back into the public somehow in the form of boosts to Educational funds, Medical funds, Research and Development or something beneficial to the Canadian Public overall??

Environmentally speaking does this mean less copper mining? I would think not as the cost of copper has risen over the years and is still used in other things; it's just not cost-efficient enough to be used in something that represents 1 cent.