Let me take one last stab at it.
What used to happen, when people put coins in parking meters and put coins in the slots in their buses, those coins would be collected by armoured cars and taken back to the coin pool and recirculated. So when a financial institution demanded more coins, those coins would be sourced not through the Royal Canadian Mint, but through the recycling of the coins through the parking meters, through the transit fares and so on. The retailers are still demanding coinage to make change, and there are two sources for them to get coins. One is recycling them through parking meters and general use of coinage, and the second is through the Royal Canadian Mint, demanding new coins.
So the fact that people are not putting them back into circulation but hoarding them instead increases the demand for new coins, and therefore we have to produce more.